Sellers from Uttar Pradesh find big success with Snapdeal
~Women’s Ethnic Wear, Watches, Appliances, Personal Care products amongst top products sold by Uttar Pradesh-based sellers on Snapdeal~
Smaller cities in Uttar Pradesh growing fast for Snapdeal
~ Noida & Lucknow are the biggest market in Uttar Pradesh ~
~ However, 60% of Snapdeal’s orders in Uttar Pradesh from smaller markets like Azamgarh, Moradabad, Bulandshahr, Deoria, Mirzapur, Mau ~
~Online demand growing fast in cities like Lalganj, Padrauna, Tanda, Phulpur, Gajraula~
Most bought in Uttar Pradesh
~ Watches, Socks, Hair Trimmers, Kitchen Gas Lighters, Dry Fruits, Puja Supplies ~
India’s retail sector, which is at present approximately Rs 56 lakh crore will reach Rs 138 lakh crore by 2025.
Online shopping, which is today about 2-3% of total retail, will grow to 10% of overall retail by 2025. Hence, the online market in India is likely to be worth Rs 14 lakh crore in the next 6-7 years, from current levels of approx Rs 2.8 lakh crore.
In India, only 10% of the retail is in the organized sector, while 90% of India’s retail is serviced by the unorganized sector – the various bazaars and markets across India. Snapdeal is focused on bringing the bazaars online.
India’s Bazaars are moving online – Fast Growth of the Value Segment
While e-commerce in India is about a decade old, the early buyers were mainly from the high-income group, who shopped for big-ticket items like mobile phones, large appliances and branded goods.
With the steady fall in the price of smartphones & data, buyers from middle-class India are coming online in massive waves. The next 400 million online buyers are very diverse in terms of their aspirations, where they live, the media they consume, languages spoken, frequency of online purchases and levels of disposable incomes.
“They are also starting to buy online and look for value-for-money choices similar to what they buy in bazaars of India. Given the size of this market, the supply of value-priced selection is growing online exponentially – mirroring the selection found in the bazaars of India”, said Rajnish Wahi, Senior Vice President at Snapdeal.
This is a market worth nearly USD 163 billion and only about 1-2% of this is online, compared to the 10-40% online penetration for branded products like mobiles, electronics, etc.
Sellers from Uttar Pradesh are coming online with Snapdeal and growing their business
Sellers from Uttar Pradesh sell large quantities of women’s ethnic wear, watches, personal care and grooming appliances like trimmers, hair dryers, footwear, and home decor.
Traditional fashion items like Chikankari Kurtas, stone crafted home decor, Banarasi Sarees are also popular. Most of the sellers of kurtas come from Lucknow while sarees come from Varanasi.
Furnishings like cushion covers, table runners, trays and boxes in hand printed paisley patterns also sell well in all parts of India.
Buyers: Popular products in Uttar Pradesh
Watches, socks, beard trimmer, headphones, water dispensers, dry fruits, vegetable chopper and flameless lighters are popular among Snapdeal’s buyers in Uttar Pradesh.
WiFi enabled CCTV cameras are one of the most sold items in Uttar Pradesh.
Uttar Pradesh is also one of the biggest markets in India for Puja supplies, including Rudraksh beads and necklaces.
In Uttar Pradesh, Snapdeal covers 1947 pin codes out of 2229 across the state. Business volumes are high from places like Lucknow, Noida, Azamgarh, Moradabad, Bulandshahr, Deoria, Mirzapur, and Mau. Demand from towns like Lalganj, Padrauna, Tanda, Phulpur, and Gajraula is catching up fast.
Six out of ten orders that Snapdeal receives from Uttar Pradesh are from the smaller cities within the state.
Emphasizing Uttar Pradesh’s importance, Rajnish Wahi, Senior Vice President (Corporate Affairs & Communications) at Snapdeal said: “Snapdeal’s vast catalogue has democratized access – buyers from all parts of Uttar Pradesh can now buy with the same convenience any product that a buyer in Delhi or Mumbai can. The bazaars of India have indeed come online through Snapdeal. We are proud to be the trusted platform of choice for enterprising sellers from Uttar Pradesh.”
Almost all the listings on Snapdeal are by small businesses and existing retailers from the physical bazaars in India, who are well conversant with the latest products – both Indian and imported. They also have a good understanding of the value-pricing strategy, given the competitive pricing that is the norm in the numerous wholesale and retail bazaars across the country.
Each and every product on Snapdeal is sold by independent sellers, all of whom are medium and small businesses.
AI, Product videos and other tools help users make the right selection
To help buyers pick the right product from a sea of items on the platform, Snapdeal uses artificial intelligence and machine learning to understand users’ buying preferences and showcases products that are closer to the buyer’s requirements. It also provides short videos explaining the product’s utility and key features because not all products are from recognisable brands or a product that the buyer would have seen before.
Games like ‘Spin the Wheel’ and ‘Scratch the Card’ help users find more attractive details and make online shopping fun and exciting.
Snapdeal – India’s third largest marketplace
Snapdeal is India’s third-largest ecommerce marketplace. More than 30 Million unique customers bought from Snapdeal in the last 12 months. In other words, more than 2% of India bought something on Snapdeal in the last 12 months.
More than 80 million users visit Snapdeal every month, browsing and buying from its vast and varied catalog. In October 2019, the monthly traffic to Snapdeal crossed 240 million visits – recording an all-time high. The Snapdeal app has been downloaded more than 100 million times by users in India.
It has more than 500,000 registered sellers, who have more than 200 million listings on the marketplace. In the last two years, Snapdeal has added 60,000+ new seller partners, who have added over 50 Million new listings on the marketplace.
As per SimilarWeb data of September 2019, Snapdeal with its 848 million visits to its web & mobile sites in the last 12 months is the third-largest e-commerce platform in India after Amazon and Flipkart.
Snapdeal’s growth basis healthy unit economics
Snapdeal’s growth is based on a strategy of pursuing growth basis healthy unit economics while simultaneously maximizing the operating efficiency of the marketplace. As per audited financials for the FY 2019-20, Snapdeal’s consolidated revenues grew by 73% (from Rs 535.9 Cr in FY 18 to Rs 925.3 crore in FY19). Simultaneously, it also reduced its loss by 71% (from Rs 611 Cr in FY 18 to Rs 186 Cr in FY 19).