Snapdeal to invest USD100 million to Boost its Fashion Business

India: With rising potential in the fashion business segment, India e-commerce major, Snapdeal, to invest USD100 million in coming years to face the rising demand from Indian consumers. The company will be selling its own brand as well as high branded fashion products.

To boost up its sales, Snapdeal, will be investing a considerable amount in technology, logistics and in tie-ups with brands for listing onto its website. Apart from this, the company is also investing in development of a flexible payment mode which will further boost up its customer base.

According to TechSci Research, the Indian E-Commerce market is at its pace reason being the present lifestyle is busy and the priorities are changing day by day and people are involving in many different things at a single point of time so they cannot spend much time on shopping which results in increasing the attraction to online sales. Moreover, the investment is a good move by the online e commerce company. The company is trying to capture the unorganized market given which is more than 70%. With players like Snapdeal trying to capture the unbranded clothing market and investing significantly in logistics and payment modes coupled with people’s interest and increasing awareness of ease of online shopping. With the demonetization in effect people would tend to shift to plastic money gradually and strategizing at the initial stages to capture the market while a very few number of major players are present in the market.

According to a recent report published by TechSci Research, “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.