Snapdeal to invest USD100 mn in fashion portfolio

Snapdeal, third largest e-tailor in India has lined up an investment of USD100 mn over the next year to grow its fashion portfolio in the high competition from Filpkart and Amazon.
“In the next few months, we’ll be making some big moves in fashion,” said cofounder, Snapdeal Kunal Bahl. However, they are not only focused on selling the branded products, but also on building its own capability.
Bahl also said about the huge mismatch in the offline and online sales of apparels.
Non-branded products comprise 90% of the offline sales while in the online space, 90% of the apparel sales are branded, said Bahl. “There is a huge mismatch in this and we have to figure it out,” he added.
Keeping in mind a significant rise in the number of people making online purchases, he added that Snapdeal is also investing significantly in the logistics and payment modes as these are perceived to be the success mantra for e-commerce companies down the line.
Around 60-70 million people in India are estimated to opt for online sales currently.
Also, the government’s drive on demonetization is driving the fall in sales, the company is focusing on popularizing its e-wallet, Freecharge.
Customers who have opted for COD can use the mobile wallet to make the requisite payments for their purchase with the company’s product delivery personnel with manuals.

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