Snapdeal: 10 Key Things You Must Know
Overview
Snapdeal is a prominent Indian e-commerce company headquartered in New Delhi, founded by Kunal Bahl and Rohit Bansal in 2010. It stands out in the Indian online shopping landscape for its focus on value-conscious customers, offering a diverse range of products at affordable prices. Snapdeal has carved a niche by targeting non-metro regions and providing options that cater to middle-income buyers. As you explore more about Snapdeal, you'll discover its innovative strategies, challenges, and the impact it has had on the e-commerce industry in India.
1. Foundation and Growth
Snapdeal was founded on February 4, 2010, initially as a daily deals platform before transitioning to a full-fledged online marketplace by 2011. The company rapidly gained traction and became one of the top online shopping destinations in India.
2. Snapdeal's Business Model
Snapdeal operates on a marketplace model, meaning it connects buyers and sellers on a single platform without holding inventory. This allows the company to offer a wide selection of products while minimizing overhead costs.
3. Snapdeal's Customer Base
The company has a broad customer base, primarily attracting middle-income, price-sensitive consumers from over 3,700 towns in India. Its platform is home to over 500,000 sellers offering products in categories ranging from fashion to home goods.
4. Challenges and Setbacks
Snapdeal faced significant challenges, including a failed merger with Flipkart in 2017. The proposed merger fell through due to valuation disagreements and internal opposition, leading Snapdeal to initiate its own comeback strategy.
5. Snapdeal 2.0 Strategy
In response to the failed merger, Snapdeal launched the 'Snapdeal 2.0' initiative, focusing on its core e-commerce business. This involved selling non-core assets and reducing operational costs to refocus on the value segment.
6. Snapdeal's Mobile App
Snapdeal's mobile app plays a crucial role in its business, providing users with a seamless shopping experience. The app supports multiple languages, enhancing accessibility for a diverse customer base across India.
7. Revenue and Financial Performance
As of FY23, Snapdeal reported a revenue of ₹388 crore with a substantial reduction in losses. The company's focus on value commerce has contributed to steady financial improvement despite market challenges.
8. Snapdeal Sale Events
Snapdeal often conducts sales and promotional events, offering customers attractive discounts and deals. These events help boost sales and brand engagement by appealing to the price-sensitive segment of the market.
9. Snapdeal's Customer Service
Snapdeal offers customer support through various channels, including its 'Snapdeal Customer Care Number' and online help center. Despite efforts to improve customer service, it has faced criticism for customer service inefficiencies.
10. Partnership and Collaborations
Snapdeal has formed strategic partnerships with several companies, including Pantaloons and GoKwik, to expand its product offerings and enhance the shopping experience for customers.
Conclusion
Snapdeal's journey is marked by strategic pivots and a strong focus on the value segment of e-commerce in India. Despite setbacks, it has managed to maintain its position as a leading online marketplace by continually adapting to market demands. The company's emphasis on non-metro regions and value-for-money products remains central to its operations. As Snapdeal continues to evolve, its strategies will likely influence the broader e-commerce narrative in India.