$100 million plus target
Snapdeal is at it again. Preetam Kaushik recently featured the company’s ‘brand stores’ concept (Sept 12th 2012) and now the company is on record stating that this new platform should contribute 50 percent to its sales in the next 12 months.
Snapdeal has set a target of Rs 600 crore in revenue (depending on the rate of exchange that’s $100 to $110 million) for the current fiscal time frame. The company is also a firm believer in mobile commerce. Currently mobile traffic accounts for about 20 percent. The company is anticipating that nearly 50 percent of the purchases on its site to be executed through the mobile platform in the next two years.
From 3,000 to 10,000 ‘brands’
According to Firstpost, Kunal Bahl (Snapdeal.com Founder and Chief Executive Officer) stated; “With brand stores, Snapdeal aims to be an enabler for the many local/offline retailers to reach out to the growing online shopping population. “Brands will be able to decide the look and feel of their page, customize product selection, manage promotions and exclusive launches.”
Brands are allowed to sign up for free. Mr. Bahl added there would be a revenue-share model based on the products sold. Presently Snapdeal has about 3,000 odd stores operating through ‘brand stores’. The company is currently negotiating with another 2,000 brands that “should be on board soon. We plan to have 10,000 brand stores in the next 12 months,” he said.
Wow – that is some aggressive sale pitching.
Snapdeal sees a huge opportunity in ‘brand stores’ and will continue to build on the concept and offer further features and refinements over time. Mr. Bahl believes that “Many brands, even the larger ones, do not have an e-commerce site. Some do not have the expertise to handle the back-end operations, such as logistics and payment. We will also help drive traffic to the sites.”