Snapdeal: Why Kunal Shah ignores his own Ecommerce company?
Introduction
Snapdeal is India’s top ecommerce portal, popularly known for providing affordable products to price-conscious customers in the millions. It was established in 2010 and has evolved from a deals-a-day website to an online shopping website. Focusing on low-cost shopping, the brand has made a space in India’s e-commerce sector. Let us go through the history of Snapdeal, its business model, marketing strategy, and how it competes with Amazon and Flipkart.
The History of Snapdeal
Snapdeal was started by Kunal Bahl and Rohit Bansal in 2010. It was initially a deals and discount website similar to Groupon. But in 2012, the firm shifted to an online marketplace, connecting buyers and sellers from across India.
The founders understood that India’s ecommerce market was huge but lacked a price-sensitive buyer model. This vision made Snapdeal popular and ranked it among India’s leading online shopping websites.
The ride of Snapdeal has not been easy. Snapdeal encountered the tough rivalry from Amazon and Flipkart, but rather than rivaling with their high-end model, Snapdeal targeted cheap and quality-oriented shopping. With this, it acquired a dedicated consumer base.
Why Is Snapdeal So Popular?
Snapdeal is popular since it understands the Indian consumer perfectly well. Let us know a few reasons for which consumers fancy buying from Snapdeal:
- Affordable Prices: Snapdeal provides products at discounted prices, thus making online shopping affordable for all.
- Crazy Product Range: From smartphones to apparel, Snapdeal has an amazing product range.
- Exclusive Deals and Discounts: The site often has offers and discounts, which appeal to price-sensitive customers.
- Easy Accessibility: Snapdeal’s website and app are easy to use, and anyone can shop with ease.
While Amazon and Flipkart have concentrated on the premium and budget segments, Snapdeal has been a value-ecommerce site, and price is its biggest worry.
Snapdeal’s Business Model: How It Works?
Snapdeal is an ecommerce marketplace that brings the buyers and sellers together. Snapdeal itself doesn’t sell anything but is a platform for third-party sellers. This is how the business model of Snapdeal works:
- Marketplace Model: It works as an intermediary platform between the buyers and sellers to help businesses reach more consumers.
- Commission-Based Revenue: It generates revenue in the form of commission from the sellers for each transaction.
- Logistics and Fulfillment: Snapdeal partners with logistics firms to ensure trouble-free delivery within the country.
- Cash on Delivery (COD) and EMI Options: COD and EMI facilities provide ease for customers to buy products easily.
Snapdeal’s focus on affordability has earned its customers’ affection in searching for value-for-money products.
The Product Categories at Snapdeal
Snapdeal deals in various products suiting the varied needs of customers:
1. Electronics and Gadgets
Snapdeal sells inexpensive mobiles, accessories, laptops, and domestic appliances. It provides reduced prices on the products from time to time so that technology becomes accessible to all.
2. Fashion and Accessories
From fashion wear clothing to new footwear, Snapdeal provides diverse fashion products at affordable prices. The website serves men, women, and kids with diversified clothing and accessory lines.
3. Home and Kitchen Essentials
Snapdeal provides everything from home decor items, kitchen appliances, to furniture pieces. Whether it is the need for affordable cookware sets or a sophisticated home decor item, Snapdeal is here to help you.
4. Beauty and Personal Care
Snapdeal’s platform is also stuffed with an impressive variety of grooming, hair care, and skin care products. Various domestic as well as international brands supply goods on Snapdeal at competitive rates.
5. Sports and Fitness
Gym enthusiasts are able to purchase gym equipment at competitive prices, fitness wear, as well as accessories from Snapdeal. The space has gained popularity, particularly due to the popular health and fitness culture.
Snapdeal’s Marketing Strategy
Snapdeal has implemented innovative marketing practices to entice customers and develop its brand. Let’s discuss some of its best marketing practices:
1. Value Commerce Strategy
Snapdeal’s strategy is committed to connecting value shoppers in India. Whereas other online shopping websites are presenting high-end brands, Snapdeal presents good-quality products at affordable prices.
2. Digital Advertising
Snapdeal spends a lot on digital advertising on Google, Facebook, and Instagram. Targeted advertising touches price-sensitive shoppers, thereby enhancing engagement and conversion.
3. Influencer Marketing and Social Media Marketing
Snapdeal takes the help of influencers to advertise merchandise and offers. Social media promotions trigger brand awareness and other customers.
4. Seasonal Offer and Discount
Seasonal sale is done by the website during festivals and holidays, offering extra discounts to users. This sale augments traffic and buying ratio.
5. Mobile-First Strategy
As there are more smartphone users in India, Snapdeal is mobile-first. Its mobile app offers a hassle-free online shopping experience, which makes it convenient for customers to shop.
Snapdeal Challenges
Though it has been successful, Snapdeal has also encountered some challenges in the highly competitive e-commerce space:
Amazon and Flipkart Competition: The ecommerce giants rule the Indian market with huge investments and advanced logistics.
Financing and Financial Issues: Snapdeal was compelled to reorganize its business when it was reporting financial losses, and it was the reason that caused a shift in strategy.
Sustaining Customer Confidence: Providing product quality and making delivery easy is a challenge in the marketplace model of business over the internet.
Affordability and customer amazement are prioritized to the maximum extent, whereas Snapdeal has kept on altering its business model continuously to combat these challenges.
Future Plans of Snapdeal
Snapdeal is aiming to consolidate its grip in the Indian market. Its top future plans are:
- Seller Network Improvement: Snapdeal is looking to increase sellers to provide an even greater variety of inexpensive products.
- Logistics Improvement: Enhancing speed and reliability of delivery will enhance the buying experience.
- Enhancing User Experience: The company is working towards making its website and app even more convenient.
- Empowering Data Analysis and AI: Using technology to personalize recommendations and drive marketing.
Snapdeal’s focus remains on affordable ecommerce shopping solutions, bringing quality products affordable prices within the reach of Indians.
Conclusion
Snapdeal has carved a niche for itself in India’s online retailing segment by catering to price-sensitive consumers. With its pocket-friendliness, extensive range of products, and intensive marketing, the site is now a name that is known to every household of an online shopper. In spite of the controversies, Snapdeal is still growing and innovating and promising to provide online shopping to all.
With the online retailing business still on the rise, Snapdeal’s customer-centric strategy will keep it in the running and in the competition. Need electronics, fashion, home appliances, or personal care items? Snapdeal is still one of the best places to shop and save.
