“We will not limit ourselves to selling other people’s products only,” he said, “If you are selling brands at a loss, why sell in the first place?”
Bahl is keeping the cards close to his chest. When asked directly if the company planned to introduce its own label, he did not confirm it. He did say that Snapdeal will be spending $ 100 million in the next year on its fashion retailing, with the focus on technology and logistics.
Fund raising and cost cutting to be the focus
The company has been concentrating on maximising its profits through a combination of moves including:
- Shifting from a 200 – seater office to a 90 – seater co-working space in Mumbai,
- Starting its own wholesale arm E-Agility,
- Shutting down its luxury ecommerce portal Exclusively.com, and
- Rearranging its corporate structure.
“There is a short-term dip in the COD business mode. Specifically, discretionary purchases have taken a dip.”
However, in the long term, this would assist more pre-paid orders, he said.
Snapdeal is the most visible ecommerce brand, says a recent study by Broadcast Audience Research Council (BARC) India. With all the steps it is taking towards a better future, it is bound to pay off.