Shopclues targets growth with 50-80% discounts; Gives into private fashion brands for profits
Online marketplaceShopcluesmight be looking for amerger or IPO, but before that happens the etailer is looking boost its customer base through discounts. Its Maha Bharat Diwali Sale began on 20th September and the etailer targeted customers from Tier 2 and 3 cities with massive discounts. All of its major categories reflected offers ranging from 50-80% off.
The company CBO and founder, Radhika Aggarwalsaid,“This year’s Diwali celebrations at ShopClues are bigger and better than ever. In line with our unwavering strategy, this year’s best deals and discounts have been curated keeping the festive needs of ShopClues’ value-driven consumers in mind, a majority of which are from Bharat – the tier 2, 3 and beyond towns.”
Growth through discounts
The primary goal behind this discounting strategy is to gain 75% business growth from September to October. To achieve this, Shopclues is:
Focusing on electronics and accessories, fashion and lifestyle and home and kitchen
Expecting 250 million visits during its Diwali sale
Spending 2.35% of its annual marketing budget
Partnering with banks and online service providers to ensure top discounts (e.g. discounts on use of ICICI net banking, credit and debit cards; Offers on domestic flights booked via Yatra; holiday trips; mobile wallet cash)
Aggarwalmentioned,“We are very excited about the exclusive deals on Electronics and accessories, with price points starting at as low as INR 99. With a unique selection of products, ShopClues’ prime focus is on delivering value at all price points for its consumers.”
She alsoadded,“We have also ramped up our associations with top banks, portals and e-wallets, to enable a seamless and delightful shopping experience for our customers during this Diwali.”
Apart from its special discounts for specific categories, through its Diwali Flea Market, Shopclues is looking to capture the utility segment. Following the concept of itsSunday Flea Market, the Diwali one will have over 10,000 festive utilities and gift products with Rs.29 as their starting price. The products on discount at the Diwali Flea Market will include, diyas, divine idols, lights, kitchen essentials, bedsheets, Bluetooth speakers and selfie sticks,
The Shopclues Diwali Flea Market is expected to commence from 7th October to 10th October. Products ordered from there will be shipped for free, provided 2 or more products are ordered. Also, prepaid orders will receive an exclusive 15% off.
The pursuit of profits
Like its competitors, Shopclues is after profitability as well. In the attempt to reach this goal, Shopclues is trying to become the ultimatedestination for online fashion. So far it’s been banking onnon-branded fashionlabels. However, now the etailer appears to be giving in to the exclusive fashion label trend.
Shopclues recentlyintroducedits first ever fashion wear private label – MEIA. Though this private label the online retailer wants to boost margins of its fashion category. Prior to it, Shopclues introduced Home Berry, an exclusive label, to its home and décor category.
MEIA by Shopclues
Unlike in the private labels acquired by ecommerce biggies, MEIA is an affordable brand from Shopclues. Products under the label have a starting price of Rs.399.
The brand is designed for young women from tier 2 and 3 cities, aged between 18 to 35 years.
Shopclues will sell designer kurtis, clutches, chunky jewellery and watchs under MEIA.
Aggarwalsaid,“Shopclues’ focus has always been filling the need-gap of consumers of tier 2 and tier 3 towns of India. Our total buyer base from these cities is more than 70 percent and the demand for better quality, affordable-designer products is increasing everyday.”
She alsoclaimedthat“In the next few months, we are looking to launch other exclusive labels in men’s fashion, electronics and accessories.”
Products under the new brand were made available from 21st September during the Maha Bharat Diwali Sale. With this brand, the etailer is looking to meet fashion demands of working women in the country. That is a demographic that desires trendy fashion at a pocket-friendly cost.