ShopClues launches electronics in exclusive label
E-commerce unicorn ShopClues has launched its first exclusive electronics label – Digimate. The Gurgaon-based online marketplace had earlier launched three exclusive labels - Home Berry (home & décor), MEIA (workwear fashion for women) and Baton (footwear fashion for men). The Digimate product range includes selfie sticks, power banks, earphones, aux cables and charging cables, with pricing from Rs 129 to Rs 699.
In a press statement, Raunak Raheja, Senior Director – Wired Category, ShopClues, said, “ShopClues has always been at the forefront of innovation, and Digimate fits the needs and expectations of our target customers perfectly. We foresee Digimate accessories to cover around 20 percent of our accessories business by March 2018. We also aim to add laptop, automotive, desktop and camera accessories in the near future.”
Plan for profitability
Private labels are the way out for e-commerce companies in India trying to make profit in a business that is extremely hard to make money from. Aiming to fill the gaps in price and quality for each category, online marketplaces collaborate with manufacturers and sellers to ensure better control for the same. The exclusive labels are not manufactured by ShopClues; they partner with merchants to be able to roll them out.
In the past one year, e-commerce market leader Flipkart has launched its private label Flipkart Smartbuy and Billion in categories like fashion, electronics, furniture, consumer durables etc. In October this year, Flipkart launched its first in-house large appliances brand, MarQ. The first products to be launched in this category were microwave ovens, and Flipkart claims they would be priced 10-20 percent lower than products from other brands claiming similar product specifications.
Aiming for an IPO
Shopclues has always maintained that it is a platform for the "real India" outside metro cities. Keen to cater to Tier-3 and Tier-4 cities, ShopClues targets those looking for branded affordable products. In July, ShopClues joined the league by launching Home Berry, which focuses on the affordable home décor market.
With Digimate too, ShopClues aims to cater to customers seeking affordable electronic accessories. The press release states that under the ShopClues Surety Program, Digimate accessories will undergo a five-point quality check, and customers will also be able to enjoy the benefits of extended warranties and reliable after-sale services.
ShopClues had earlier stated that they will have an IPO by Q1 next year, and that business is growing profitably. With the launch of exclusive labels, ShopClues will inch closer to the goal.
Game of profit and loss
In 2016, e-commerce growth in metros was flat, but ShopClues claims to have seen major growth in Tier-3 and Tier-4 towns. Over the last year, orders have more than doubled and net revenue has tripled. They also claim that the number of their transacting customers doubled with most new customers from Tier-4 cities.
However, recent reports suggest that ShopClues’ revenue had risen only by 5 percent in to Rs 188 crore in FY 17. The company’s ROC data suggests that their losses, however, declined by 13 percent to Rs 332 crore in the same period. With Flipkart and Amazon also growing their roots in Tier-2 and Tier-3 cities, ShopClues’ latest effort will boost the company's effort for profitability.