Snapdeal has plans to add another 5,000 manufacturer sellers on its platform in 2020. It expects most of these manufacturers to join from India’s production hubs such as Meerut, Ludhiana, Tirupur, Jaipur, Panipat, Surat and Rajkot. From the last year, Snapdeal has started to sell daily use products like steel and copper utensils, kitchen gadgets and fashion accessories bypassing the traditional structure of selling through wholesalers and retailers. The fastest growth, especially in the non-metro centres, has allowed these manufacturers to tap a new set of always-connected customers, which traditional retail structures cannot capture.
Direct sales to consumers translate into higher margins for producers, as multiple links in the retail chain are replaced by the platform. Other savings that accrue to the producers are through more efficient utilisation of stocks since stocks are not stuck at multiple points unlike in traditional, layered physical channels. The ability to sell directly also means that producers get prompt feedback from users, allowing them to make appropriate decisions regarding future demand and trends.
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