Snapdeal last week went into crisis mode after talks for a bridge round of funding with existing investor SoftBank were deferred because of differences over valuation. However, Founder & MD, Deal Kya Hai, Amit Daga says the current layoffs are not something to bemoan. In fact, they could be an opportunity for many in the industry – other newbies/start-ups – at the very threshold of expansion.
“All other players on the verge of expansion are now looking at a talent pool in the industry that needs jobs, and these skilled set of individuals are the ones who can help e-Retailers grow to a new level and create a buzz in the industry. So, we would like to ensure that the note needs to go out that there is no dearth of jobs, and companies like us and other niche start-ups are eager to build new teams within the organizational vertical,” he writes.
“The recent layoffs at Snapdeal are not a very good sign for the industry as a whole. The e-retail giant is hastily targeting for positive bottom-lines which will result into steep decline in their GMV, hence creating a void in the market and will give space for emergence of niche e-Retail players – creating their own brand identities.”
“The industry will witness niche e-Retail players to bring and sustain a growth momentum by establishing their brand within a geography/ product line/ service line etc. This will help the whole ecosystem to grow and build a very progressive and healthy market in future,” he further says.
Snapdeal coming out all clean and admitting their shortcomings is a very bold move. However, the industry is shaping up and evolving every day and companies need to move with the times. Snapdeal’s drastic step can also be seen as a smart move since now they have the opportunity to specialize in a certain vertical and build on it over time.
“Sales will be cut down as they will be focusing on a profitable businesses and this will lead to new players to enter the vacuum being created by them,” concludes Daga.