India’s largest online marketplace, Snapdeal has announced a massive expansion of its fashion portfolio. With an additional 120+ fashion brands added to the platform, the expansion is in sync with the brand’s focus on building its fashion vertical.
Owing to the ever increasing demand of the users and their search patterns, Snapdeal will now offer the consumers a bouquet of top national and international brands such as United Colors of Benetton, Puma, Nautica, US Polo Association, Steve Madden to name a few.
Fashion contributes upto 40 per cent of Snapdeal’s sales volumes and has grown by a 50 per cent YoY with majority of the growth fuelled from Tier I and Tier II cities. Key beneficiaries of this growth include categories such as branded sports footwear that has grown in its contribution by 75 per cent YoY, followed by women’s clothing growing by 60 per cent.
Senior Vice President – Business, Snapdeal, Vishal Chadha stated, “We realized that there is an ever growing demand for branded fashion among Indian consumers. And in line with our brand philosophy, Unbox Zindagi, we are always looking for ways to help our consumers fulfill these innate desires. The expansion of our fashion assortment is a major step in that direction. From national to international brands, Snapdeal aims to become the one stop shop for every fashion trend and style needs.”
Recently, Snapdeal was reportedly shutting its non-core businesses. However, the company had firmly denied all reports that it is laying off over 1,000 employees.
The beleaguered e-commerce firm has also shutdown marketplace Shopo last week after a year-and-a-half of operations. The company had acquired Shopo – a platform that allowed small and medium-sized businesses to chat, buy and sell on the platform on a zero-commission model – in 2013. Ironically, in 2015, Snapdeal had announced an investment of US $100 million in this very marketplace.
This week, there have been reports that the e-tailer has also disbanded its SD Instant team (Same Day Delivery Express). The service allowed customers to purchase daily needs and fresh foods and enjoy same day/next day delivery. It was launched across Delhi, Mumbai and Bengaluru, but the service is now only operational in Gurugram.
A number of senior level officials have also quit lately, including Fashion Head Amit Maheshwari, Senior Vice-President Tony Navin; Head of Shopo, Sandeep Komaravelly and Corporate Development Head, Abhishek Kumar.
Amit Maheshwari had been elevated as CEO of Exclusively, the e-tailer’s premium and luxury fashion goods platform, which was shuttered last year.
In September 2016, Snapdeal underwent a massive restructuring and marketing exercise. Under the same, a new logo was introduced, along with a new tagline. Furthermore, it initiated an investment of Rs. 200 crore, solely focusing on enhancing the marketing campaign.
Prior to its revamp, Snapdeal recorded a loss of Rs 2,960 crore during the financial year ending March 31, 2016, which is almost double the loss incurred in the previous financial year.