It has been about a month since Snapdeal reportedly started working on its Snapdeal 2.0 strategy. Now, reports are coming out suggesting that the e-commerce marketplace is preparing for pre-festive sales.
As per the reports, the Delhi-based company is looking to roll out 3-4 sales during the Diwali season. The move is aimed at taking the market share which it lost in the past year or two.
The sales are expected to be conducted from the last week of this month. There are no details available about what to expected from the sales, and what is company’s strategy to win back market share.
However, experts are expecting that Snapdeal will be focusing on high-margin categories such as fashion and accessories, rather than mobiles and electronics.
The pre-Diwali sales are lucrative for the e-commerce companies in India, as such events gives significant boost to sales and revenues. According to a report from RedSeer, e-commerce firms generated gross sales of at least Rs 14,000 crore during the festive season last year.
Along with Amazon and Flipkart, this time, Paytm Mall is too preparing for the festive sale, and has already allocated around Rs 1,000 crore for promotions and marketing.
After its acquisition talks with Flipkart fell through, Snapdeal has now pivoted to a pure marketplace model, and is expected to focus on non-branded products across fewer categories.
While the company is running short on cash, in order to keep the business running, Snapdeal sold its payments platform FreeCharge for Rs 385 crore to Axis Bank.
It was all-set to sell its other subsidiaries as well. However, after getting lukewarm response for its logistics company Vulcan Express, Snapdeal decided to keep the unit and invested Rs 152 crore in the company.