Snapdeal to invest $100mn to boost fashion biz segment

In What’s Happening in Retail by Elargirindia0 Comments

Click Here for Original Source – Economic Times

Kolkata: India’s third largest e-tailer Snapdeal will pump in $100 million over the next one year to uplift its online fashion portfolio in the wake of surging competition from its peers. The Indian e-commerce major will not be only focusing on selling branded products but will also build its own capability affordable and high quality fashion products.

“In the next few months, we’ll be making some big moves in fashion. We’ll not limit ourselves to selling other people’s products only,” Snapdeal co-founder and CEO Kunal Bahl said at the Foundation Day programme of the IIM Calcutta.

According to Bahl, there is a huge mismatch in the offline and online sales of apparels in India. He said non-branded products comprise 90% of the offline sales while in the online space, 90% of the apparel sales are branded. “We have to figure out this huge mismatch. Investments will be across technology, logistics, partnership with brands and marketing. There will be some key partners in the fashion industry, too,” he added on the sidelines of the IIM-C event.

However, on unveiling an exclusive fashion or apparel brand in this initiative, Bahl chuckled: “Right now, I cannot share anything on that.”

50% of Snapdeal sales comprises of the (COD) mode which took the brunt of marginal decrease in sales.

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