Snapdeal is introspecting on its previous investments as experts predict that the marketplace is close to fading out. Fund crunch and intense competitive rivalry has forced the etailer to realign its strategy, cut costs and slow down cash burn.
For the same reason, Kunal Bahl’s company has shut down Exclusively.com, the luxury ecommerce firm it had acquired in February 2015. The plan is to integrate the luxury portal’s product line into Snapdeal’s platform.
“This integration will ensure a wider access for the fashion and lifestyle products available on Exclusively, as now all Snapdeal users will have access to the same. This move comes as Snapdeal adds more depth and brands to the fashion category,” said Snapdeal.
A person close to the development revealed that Exclusively’s site will function for the next 30-60 days but the traffic and purchases will be directed to the marketplace’s website.
Snapdeal’s tryst with fashion
Acquiring Exclusively was part of Snapdeal’s plan to strengthen its fashion platform. But with its closure, it is safe to say that the plan failed. The marketplace’s last fashion deal too soured after Flipkart grabbed Jabong without warning.
Fashion is a very important ecommerce category for all players, be it Flipkart or Amazon. Therefore, Snapdeal was keen on acquiring fashion etailer Jabong but the Bansals swooped in at the last minute.
Meanwhile, Myntra grabs Sachin Tendulkar’s fashion brand
While Snapdeal is busy streamlining its fashion category, Flipkart-owned Myntra has managed to grab yet another exclusive deal.
Celebrated cricketer Sachin Tendulkar’s menswear brand ‘True Blue’ has made its virtual debut through Myntra. Arvind Fashion Brands and the cricketer developed the premium brand, which was launched in May this year.
“True Blue embodies my identity and corresponds to the way I look at fashion… It is exciting to note that True Blue will be available online on Myntra to the many customers across the country and continues its pursuit of emerging as an iconic brand from India,” said Tendulkar.
Quite expectedly, Flipkart-Myntra is thrilled about this partnership.
American etailer Amazon is assembling a tech-team specifically for its fashion vertical to beat the trio. Snapdeal too will have to think fast before it’s too late.