Maharashtra’s Bazaars going online with Snapdeal

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Pune, 26th November 2019: Snapdeal, India’s leading e-commerce marketplace, has expanded its selection to cater to the value-conscious mass segment,

India’s Retail Sector

India’s retail sector, which is at present approximately Rs 56 lakh crore will reach Rs 138 lakh crore by 2025. Online shopping, which is today about 2-3% of total retail, will grow to 10% of overall retail by 2025. Hence, the online market in India is likely to be worth Rs 14 lakh crore in the next 6-7 years, from current levels of approx Rs 2.8 lakh crore.

In India, only 10% of the retail is in the organized sector, while 90% of India’s retail is serviced by the unorganized sector – the various bazaars and markets across India. Snapdeal is focused on bringing the bazaars online.

Fast Growth of the Value-conscious Segment – Bazaars moving online

“While e-commerce in India is about a decade old, the early buyers were mainly from the high-income group, who shopped for big-ticket items like mobile phones, large appliances and branded goods,” says Snapdeal spokesperson while commenting on ecommerce trends.

“With the steady fall in the price of smartphones & data (Internet), buyers from middle-class India are coming online in massive waves. These next 400 million online buyers are very diverse in terms of their aspirations, where they live, the media they consume, languages spoken, frequency of online purchases and levels of disposable incomes. They are also starting to buy online and look for value-for-money choices similar to what they buy in bazaars of India,” he added.

Given the size of the market, the supply of value-priced selection is growing online exponentially – mirroring the selection found in the bazaars of India. This is a market worth nearly USD 163 billion and only about 1-2% of this is online, compared to the 10-40% online penetration for branded products like mobiles, electronics, etc.

Sellers: Popular Products from Maharashtra

The sellers from Maharashtra sell large quantities of personal care appliances like trimmers, shavers, straighteners, dryers, and multi grooming kits on the platform. Traditional fashion items like Paithani sarees, and nose rings studded in Basra pearls and coloured stones are also popular.

Furnishings like cushion covers, table runners, trays and boxes made of Khan, an old and traditional material of Maharashtra, also sell well in all parts of India.

Most of the sellers of appliances are based out of Bhiwandi while fashion and furnishings come from all parts of Maharashtra.

Buyers: Popular products in Maharashtra

Watches, digital gift cards, wireless Bluetooth earphones, and fitness trackers are popular among Snapdeal’s buyers in Maharashtra.

Kitchen utility items like wooden serving spoons, blenders, choppers, and water dispensers are also high selling items.

Mangalsutra is the most popular fashion accessory item among women in Maharashtra.

In Maharashtra, Snapdeal covers 2289 pin codes out of 2302 across the state. Business volumes are high from places like Nagpur, Nashik, Kolhapur, Ahmednagar, and Aurangabad. Demand from towns like Karad, Dhule, Sangli, Khamgaon, and Jalgaon is catching up fast.

Eight out of ten orders that Snapdeal receives from Maharashtra are from the non-metro locations within the state.

Emphasizing Maharashtra’s importance, Rajnish Wahi, Senior Vice President (Corporate Affairs & Communications) at Snapdeal said: “Snapdeal’s vast catalogue has democratized access – buyers from all parts of Maharashtra can now buy with the same convenience any product that a buyer in Mumbai or Pune can. The bazaars of India have indeed come online through Snapdeal. We are proud to be the trusted platform of choice for enterprising sellers from Maharashtra.”

Almost all the listings on Snapdeal are by small businesses and existing retailers from the physical bazaars in India, who are well conversant with the latest products – both Indian and imported. They also have a good understanding of the value-pricing strategy, given the competitive pricing that is the norm in the numerous wholesale and retail bazaars across the country.

Each and every product on Snapdeal is sold by independent sellers, all of whom are medium and small businesses. Snapdeal is building a better pan-India bazaar, that offers more choice, more deals, higher convenience, and user-friendly policies. Snapdeal’s marketplace makes shopping fun, recreating the buzz and bargains of the bazaars of India.

AI, Product videos and other tools help users make the right selection

To help buyers pick the right product from a sea of items on the platform, Snapdeal uses artificial intelligence and machine learning to understand users’ buying preferences and showcases products that are closer to the buyer’s requirements. It also provides short videos explaining the product’s utility and key features because not all products are from recognisable brands or a product that the buyer would have seen before.

Games like ‘Spin the Wheel’ and ‘Scratch the Card’ help users find more attractive details and make online shopping fun and exciting.

Snapdeal – India’s third largest marketplace

Snapdeal is India’s third-largest ecommerce marketplace. It has more than 500,000 registered sellers, who have more than 200 million listings on the marketplace. In the last two years, Snapdeal has added 60,000+ new seller partners, who have added over 50 Million new listings on the marketplace.

More than 80 million users visit Snapdeal every month, browsing and buying from its vast and varied catalog. In October 2019, the monthly traffic to Snapdeal crossed 240 million visits – recording an all-time high. The Snapdeal app has been downloaded more than 100 million times by users in India.

As per SimilarWeb data of September 2019, Snapdeal with its 848 million visits to its web & mobile sites in the last 12 months is the third-largest e-commerce platform in India after Amazon and Flipkart.

It is more than four times the size of the Chinese e-commerce platform, Club Factory, which is distant # 4 with 205 million visits in the last 12 months.

Snapdeal is also about eight times the size of Paytm Mall, which recorded about 106 million visits to its web and mobile sites during October 2017-September 2018.

Snapdeal’s growth basis healthy unit economics

Snapdeal’s growth is based on a strategy of pursuing growth basis healthy unit economics while simultaneously maximizing the operating efficiency of the marketplace. As per audited financials for the FY 2019-20, Snapdeal’s consolidated revenues grew by 73% (from Rs 535.9 Cr in FY 18 to Rs 925.3 crore in FY19). Simultaneously, it also reduced its loss by 71% (from Rs 611 Cr in FY 18 to Rs 186 Cr in FY 19).