E-commerce major Snapdeal Thursday said it focussed on reaching out to customers in Tier-II and III cities by offering appropriate products and pricing.
According to a PTI report: The company however said it has no plans to introduce private labels as it would go against the interest of the registered sellers on the platform.
Speaking to reporters here, Snapdeal Senior Vice-President (Corporate Affairs and Communications) Rajnish Wahi said currently the company added about 50,000 sellers to its platform last fiscal and now has a seller base of about five lakh across the country.
“We are putting together merchandise that is relevant for those consumers (in Tier II and III). Those customers were looking at certain price range. If customers find what they want and if they find ample choice they will from Tier-II and III and beyond. So we are expanding the relevant selection for them by getting a lot more sellers who understand that,” he was quoted by PTI as saying.
According to him, Delhi and Gujarat are among the places which have the largest seller base for the e-commerce company.
Citing market research reports, Rajnish Wahi said the country’s overall consumption demand is worth US$ 800 billion currently and is expected to reach US$ 2 trillion by 2025.
Noting that Andhra Pradesh and Telangana have a huge base of sellers on Snapdeal, he said those in Kadapa are the highest sellers of general medical equipment like thermometers BP and heart rate monitors and diabetic care products on the platform.
Kurnool-based sellers sell large quantities of smartwatches, bluetooth devices, cable charges, speakers, headphones and earphones while Hyderabad dealers sell more of computer accessories, he explained.
Clarifying that Snapdeal has not intention to launch private label products, the official told PTI, “We were never in private label business. We have understood the segment. There tend to be higher margins in private labels. But that is not in sync with our philosophy.”