Snapdeal may soon be able to outpace its competitor, Flipkart
Snapdeal, an online retailer based in India, has been seeing strong growth over the past several months. The company is on track to compete with Flipkart, which is another online retailer that is well known throughout India. Snapdeal has been able to find success among consumers due to its focus on mobile commerce. Many people throughout India are making use of their mobile devices to shop and purchase products that they are interested in.
Snapdeal reaches the $1 billion in sales milestone a year ahead of schedule
Snapdeal CEO and founder Kunal Bahl has announced that the company has reached more than $1 billion in sales a full year ahead of its target. Initially, Snapdeal had expected to reach this milestone at some point in 2015. Competitor Flipkart has recently reaches a similar milestone, but Snapdeal is expected to outpace its competitor in terms of capital this year. Bahl suggests that Snapdeal is one of the fastest growing and most capital efficient companies in India’s mobile commerce sector.
Indian consumers show their favor for mobile commerce as smartphones become more available
Consumers throughout India are finding it more convenient to shop from their mobile devices than it is to visit a physical store. Many of these consumers typically commute to their work and home, making visiting a physical store somewhat difficult. As smartphones become more available, more people are using these devices to engage in various mobile-centric activities, including shopping. Companies like Snapdeal and Flipkart are poised to take advantage of the growing interest that consumers have when it comes to mobile commerce.
Snapdeal focuses on efficiency and convenience, much to the joy of consumers
Snapdeal was established in 2010 and has managed to grow by 500% over the past year. The company’s growth is being attributed to allowing retailers to offer their products to consumers directly. This means that Snapdeal holds no inventory itself, unlike its competitor Flipkart. Snapdeal has also adopted a focus on efficiency and convenience, two things that Indian consumers have shown a great deal of support for.
BWild |
February 10, 2014
Retail environment of India is beginning to evolve
India’s retail climate is beginning to change. In the past, a common saying among consumers has been “can’t touch, won’t buy,” but the advent of mobile technology is beginning to change the way people feel about purchasing products. As Internet access becomes more common throughout the country, many Indian consumers are beginning to turn to e-commerce for everything they need. As more people get their hands of smartphones and tablets, they are beginning to purchase products using these devices, hence a growing focus in the retail sector on mobile commerce.
E-commerce is experiencing strong growth as consumers become more mobile
India’s e-commerce business grew by 80% in 2013, according to Flipkart, one of the country’s leading e-commerce firms. The company notes that this is the most significant growth e-ecommerce has seen in the country in the past several years. The momentum behind e-commerce is expected to remain strong for the foreseeable future. Notably, many consumers are beginning to purchase products from online retailers with their mobile devices rather than with home computers.
Retailers are focusing more heavily on mobile commerce
Flipkart suggests that consumer mentality is beginning to shift at a rapid pace. People are beginning to feel that mobile commerce represents a more convenient form of shopping. Consumers are not making the move toward mobile shopping on their own of course, as retailers are also beginning to focus more heavily on the mobile crowd. India’s e-commerce market is currently valued at approximately $13 billion and retailers are beginning to see a great deal of potential in the mobile space when it comes to the future of e-commerce.
E-commerce market expected to hit $70 billion by 2020
The e-commerce market in India is expected to reach $70 billion by 2020 as more retailers begin focusing on mobile commerce. Consumers are quickly becoming convinced that mobile payments will have a major role to play in the future of their shopping. It may be some time before mobile becomes the most favored shopping platform in India, however, as many people are likely to remain supportive of traditional, physical stores.
