Snapdeal’s small town strategy reaps growth as traffic more than triples

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Published: October 21, 2019 4:59:06 PM

According to the data shared from SimilarWeb, Amazon India led the table in terms of visits in September 2019 at 344 million followed by Flipkart-Myntra with 314 million visits, China’s Club Factory with 29 million, ShopClues at 8.27 million etc.

Snapdeal’s traffic grew 61 per cent in the last year to cross 87-million mark, Photographer: Kuni Takahashi/Bloomberg

Ever since e-commerce firm Snapdeal decided to reorient its business model towards value-conscious buyers from small cities in India with its Snapdeal 2.0 strategy, the company has been claiming steady growth in the e-commerce market dominated by Amazon and Walmart-owned Flipkart. The company, citing data from web analytics services provider SimilarWeb, on Monday said that its combined traffic from web and mobile sites more than tripled to over 87 million visits in September 2019 from 27 million in October 2017. Snapdeal had announced its 2.0 focus in August 2017 after merger talks with Flipkart shelved.

Snapdeal’s traffic grew 61 per cent in the last year to cross 87-million mark while it saw 848 million visits during the year in its focus market of 400 million potential buyers which is “the fastest-growing segment in Indian e-commerce,” the company said in a statement. The value segment provides with over 90 per cent of Snapdeal customers based in small cities. 

Also read: Small businesses, not large firms, likely to delay MSME payments; need robust trade finance ecosystem

Kunal Bahl, the company’s CEO had recently tweeted about having highest-ever monthly transacting users in September 2019. The company had claimed the rise in its order volume by 52 per cent during its six-day Diwali sale earlier this month from last year sale.

The company had in July this year released audited financial results for FY19 according to which its consolidated revenues grew by 73 per cent from Rs 535.9 crore in FY 18 to Rs 925.3 crore in FY19 along with cutting losses by 71 per cent from Rs 611 crore in FY 18 to Rs 186 crore in FY 19. It added over 60k new seller partners over the past two years with more than 50 million new listings. Snapdeal currently has over 5 lakh sellers with overall more than 200 million listings.

According to the data shared from SimilarWeb, Amazon India led the table in terms of visits in September 2019 at 344 million followed by Flipkart-Myntra with 314 million visits, China’s Club Factory with 29 million, ShopClues at 8.27 million, Tata Cliq at 7.65 million and Paytm Mall at 5.62 million.

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