Snapdeal packs up its premium fashion business ‘Exclusively.com’; says it is a part of the integration
Snapdeal closes ‘Exclusively.com’ in order to bring everything under one roof.
The online retailer Snapdeal closes down the luxury fashion business, ‘Exclusively.com’. Now all the products will be available on a common platform and will be shipped by the Snapdeal’s own logistic network. However, Snapdeal has stated that it is the part of the process of integrating ‘Exclusively’ rather than closing.
Snapdeal is believed to be looking for streaming its fashion category from quite some time by bringing everything under a single umbrella. ‘Exclusively.com’ was sure to be shut down when it was outflanked by the rival retailer, Flipkart’s Myntra, who had acquired Jabong for $ 70 million just a month ago. After the acquisition, Myntra-Jabong together is estimated to hold seventy percent of the entire market’s share in the online fashion segment. As per the report laid in the month of June this year by AT Kearney and Google, lifestyle category is estimated to hold thirty five percent of the entire online spend in India and will overtake the consumer electronics and come up as the largest online segment by the year 2020. Data put forth by Forrester Research shows that online clothing, accessories and footwear segment is expected to go above $ 5 billion by the end of the year 2016.
The decision of Snapdeal has been taken in the light of the fact that luxury and premium fashion products hold less than five percent of the entire segment and also the operations of ‘Exclusively.com’ did not run very well. Forecast analyst from Forrester, Satish meena says that the actual fight now is between the Amazon and Flipkart and it is a wiser step to close down the business like ‘Exclusively.com’ which actually do not contribute much.
What should be expected from the Snapdeal now? Well, customers need to keep patience to get the answer of the question. At the moment, it looks a smart decision but the actual good will come if the customers keep their faith alive in the online store.