Online marketplace ShopClues has set some aggressive plans for its fashion category, having partnered with 90 such brands.
Online marketplace ShopClues has set some aggressive plans for its fashion category, having partnered with 90 such brands. Many of these partnerships, it said, will lead to these brands manufacturing exclusive products for ShopClues.
Radhika Aggarwal, CEO and co-founder, ShopClues, told FE that the company is going to focus majorly on getting new designs and selections in the ‘street fashion’ category, that evolves and changes quickly.
The company has partnered with brands such as Manyavar, Manish Creation, Siyaram, Raymonds, Yepme, Puma, Flying Machine, etc. ShopClues will offer discount of up to 70% on these brands’ products to make them affordable for its price-sensitive buyers. Fashion as a category contributes 30% of its overall orders.
At the time when pressure on e-commerce companies to reduce their cash burn is mounting, ShopClues’ new collection in apparels will run on the back of discount it will offer.
“Brands and labels produce special collections for us keeping our price points in mind where we get fresh fashion and still manage to give discounts as our sourcing prices are well negotiated at each product level,” Aggarwal explained.
The way ShopClues has managed to discount high-end products is with strategic partnerships at every level of sourcing products. It has partnered with multiple players in the apparel industry such as manufacturers, brands and various other players who can manufacture products at a price that ShopClues asks for.
“Our target group expects lower price point than what is retailed in other parts of the business. So we want to give a high-end brand kind of a look with sweet spot price point in the fashion segment,” said Dharmender Khanna, director-lifestyle, ShopClues.
Last month it rose to become a unicorn after an undisclosed funding round led by sovereign wealth fund GIC Pte Ltd, with participation from existing investors Tiger Global Management and Nexus Venture Partners, at a valuation of more than $1.1 billion. A year ago, ShopClues had raised $100 million from Tiger Global, the backer of India’s largest online firm Flipkart and China’s Alibaba.
Myntra, the fashion unit of Flipkart, had earlier said it has reduced its discount by 6% in the quarter ended December and “going forward, the discount will go further down by 3-4%,” Ananth Narayanan had said in January.
ShopClues has also actively started tracking trends such as what kind of clothes in which colour and at what price point buyers are looking for at its site. “We keep working on trend analysis every 15 days to find out what customers are looking for, what price point they are searching, what colour filter they are putting, etc. Based on our finding we try to get those products at same price points that our customers looked for,” Khanna said. He claimed the turn-around time for ShopClues to make a specific design and colour available based on the user behaviour takes anywhere between 15-25 days.
“While our key approach of being a champion in low price products still remains our core, the focus is getting anything and everything our customer expects in fashion at these low ASP (average sales price) available on our platform,” Aggarwal added.
The company is also sourcing local and indigenous designs and patterns from regions that are known for their specific work, such as Banarsee saree, South silk saree, Bhagalpuri silk saree, cotton from every region, among others. “Surat is a very big contributor to our saree collection. We have partnered with factories there who are making sarees only for us. We have blazers available at R600, that is the cost of getting it dry-cleaned,” claimed Khanna.