Di­vide & Con­quer: Shop­Clues Drops Re­gional Ops, Eyes Cities for Growth

On­line mar­ket­place to di­vide coun­try into dif­fer­ent cities as op­posed to re­gions Sav­ings Mode

The Economic Times - - Diruption: - Payal.Gan­guly@ times­group.com

Ben­galuru: On­line mar­ket­place Shop­Clues is look­ing to ex­pand its seller base and make in­tra-zonal ship­ments the norm to speed up de­liv­er­ies and re­duce lo­gis­tics cost, a move that comes at a time when etail­ers are seek­ing to ful­fil or­ders faster than their com­peti­tors as dis­counts take a back seat. “We are mov­ing to­wards di­vid­ing the coun­try into dif­fer­ent cities as op­posed to re­gions for our ship­ments,” said Rad­hika Ag­gar­wal, chief busi­ness of­fi­cer at Shop­Clues. “The idea of ship­ping from within the zone of a cus­tomer works

Es­ti­mated cost sav­ing with ship­ping within a zone

per­fectly for struc­tured cat­e­gories. The un­struc­tured cat­e­gory might or might not ben­e­fit from this,” she said. The Gur­gaon-head­quar­tered mar­ket­place will work with lo­cal courier part­ners for de­liv­er­ies within the zone, she said.

Ship­ping within a zone leads to a cost sav­ing of about 25%, re­sult­ing in bet­ter mar­gins for the mar­ket­place and prices for the cus­tomers. Alibaba-backed mar­ket­place Paytm has also been ex­pand­ing its on­line-to-off­line ship­ments across re­gions to speed up de­liv­ery time.

Shop­Clues had last year in­tro­duced the con­cept of neigh­bour­hood mar­ket fea­ture, which is cur­rently in the pi­lot stage in Gur­gaon for four-six hour de­liv­er­ies.

“We are cur­rently at 4 lakh sell­ers on our plat­form and plan to in­crease it to 12 lakh sell­ers by the end of 2016. This will also im­prove our re­gional selections and price range of prod­ucts, mainly from the tier-2 and 3 mar­kets,” said Ag­gar­wal. The GIC and Tiger Global-backed com­pany has been work­ing to­wards lo­cal out­reach to on-board mer­chants in the south­ern re­gion and plans to take its e-en­trepreneur­ship busi­ness con­test live on TV for a lim­ited episode.

The mar­ket­place, val­ued at $1.1 bil­lion in its last round of fund­ing, is tar­get­ing profitabil­ity by mid-2017.

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