Snapdeal Looking Forward to Set up Offline Distribution Network

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Snapdeal Looking Forward to Set up Offline Distribution Network
22 Dec 2021
6 min read

News Synopsis

The preliminary paperwork of Snapdeal for its initial public offering (IPO), has revealed that the company is planning to set up an offline distributing network. The draft red herring prospectus (DRHP) highlighted that the omni-channel presence of the platform will be able to capture the attention of buyers on both online and offline channels. 

The company will establish distribution channels through offline stores as a part of its expansion plan. It will also allow the buyers to try on the item before buying it.

According to a Redseer report, the majority of lifestyle retail segment sales take place offline in India, most of which are unorganized and unbranded. The top retailers record a combined annual revenue of almost $5.5 billion in 2020.

Snapdeal also noted that they would not need to worry about delivering liability, return experience, shipping costs, and user interface in the offline distribution.

Other than this the e-commerce company is also planning to set up new power brands, owning the intellectual property of the brand and licensing the third-party sellers for the manufacturing. Snapdeal currently has 13 such power brands, which made up 5.6% of all purchases on Snapdeal from April to September this year.