ShopClues.

com Winning the Mass Market

ShopClues.com was conceptualized in the Silicon Valley in June

2011 as Indias first managed marketplace and launched on 26th

January 2012. In less than two years, ShopClues has emerged among

the five largest E-Commerce companies in India, based on Gross

Merchandise Value (GMV).

With more than 40 million monthly visitors, the company has seen

over 600% year-on-year growth, making ShopClues the fastest

growing ecommerce company in India. ShopClues also has one of the

largest and fastest growing merchants base with more than 1 lakh

sellers and over 16 million SKUs (largest catalog excluding books).

As per Alexa rankings, ShopClues is the 43rd most visited site in

India.

ShopClues approach reflects Indian products, shopping and cultural

tastes. It is inspired by the fact that India has millions of small

merchants with interesting products and Indians love to shop in local

bazaars (markets). While we cover a broad range of products,

prices, categories, brands, and sellers, we specialize in non-standard

categories, unbranded products or less-known brands, smaller

merchants, and tier 2/tier 3 cities. Unstructured products account for

over 75% of our GMV. We are thus a combination discovery and

transaction-enabling engine.

In addition to strong traction and very well developed marketplace

ecosystem, we also have an unmatched cost advantage and rapidly

improving business fundamentals. Amongst all the top players, we

believe that we have the lowest customer acquisition cost (CAC) and

lowest marketing spend. Further, 85% of our customers prepay for

their orders, bringing about huge operating efficiency. Cash on

delivery (COD) accounts for fewer than 15% of our sales vs. the

national average of 80%.

ShopClues has a very strong management team with combined

experience in e-commerce, technology and retail, and is powered by

an enthusiastic workforce of nearly 550 professionals.

Indian e-commerce: Shopclues
emerges as challenger to
Flipkart, Amazon, others

Shopclues beats Snapdeal in stock-keeping units and is ahead of Flipkart

and Amazon in terms of merchants...
By: Sunny Sen | New Delhi | Updated: April 14, 2015 6:37 PM
1 0 G+0 0
Shopclues is neck and neck with Snapdeal, with about 1,00,000 sellers while it is ahead of Flipkart and
Amazon.

In what pitches it against Indias three biggest e-commerce names

Flipkart, Amazon and Snapdeal mass market online marketplace
Shopclues has been aggressively adding sellers and building its catalogue. In
the last one year, it has overtaken Snapdeal in the number of stock-keeping
units (SKUs). According to a recent Morgan Stanely report, Shopclues has 16
million SKUs, less than Flipkart (20 million) Amazon (19 million). Snapdeal
has 10 million.
When Shopclues started three years back, others, except Amazon, were
already deeply entrenched in India. Snapdeal and Flipkart have been around
for about eight years. Considering that, Shopclues is posing a serious threat to
other e-commerce companies that talk of the availability of higher SKUs and a
wide range of merchants on their site.
Speaking of merchants, Shopclues is ahead of Flipkart and Amazon. Flipkart
has 7,000 sellers and Amazon has 16,000. Shopclues is neck and neck with
Snapdeal, with about 1,00,000 each. From the very beginning our strategy
has been around merchant acquisition and catalogue enrichment, said
Sanjay Sethi, CEO and co-founder of Shopclues. Our focus has always been
to have the highest selection of products and offer them at the lowest prices.
That seems like an echo. For the past two years, Shopclues rivals have been
doing roadshows and press conferences talking of the growing number of
merchants and widening their catalogue. We have crossed Flipkart and
Amazon in SKUs, and we are confident about that. They sell more of well-
known brands, we are about empowering regional and local brands, Sethi
said.
Shopclues focuses on the unstructured mass market category, mostly for tier-
II and tier-III categories. For example, if we take apparel as a category which
governs 30-35% of e-commerce sales, Shopclues focuses on products in the
range of Rs 300 to Rs 600.
The mass market e-commerce firm in January raised $100 million from Tiger
Global and two other existing investors. Shopclues has emerged as the
leading marketplace of choice for the millions of small and local businesses
seeking to reach mass consumers in Indias tier 2 and tier 3 cities, said Lee
Fixel, partner at Tiger Global.
Shopclues reaches 12,000 pin codes and is expanding fast. It did a gross-
merchandise-value of $400 million in FY15. More than 40% of its traffic comes
from mobile, and it has 40 million monthly visitors. Sethi is aiming at 1 billion
SKUs in the next three years.
Till now, its been a market of the big three. Shopclues might just be the fourth
challenger in the race.