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The Indian e-retailing industry is booming. Case in point, the market size has grown from $600 million two years
ago to $2.3 billion. We are at a similar inflection point as China was 10 years ago. This is just the beginning. The eretailing market is expected to reach $32 Billion by 2020. According to Matrix Partners, many Billion dollar ecommerce companies are expected to be created in India by then. At present, there are just 3: Flipkart, Snapdeal
and Paytm that has just joined the club. Notably, these 3 and the other big domestic and foreign players, namely
Shopclues, eBay and Amazon, follow a horizontal marketplace model. As competition amongst them heats up and it
is hard to distinguish from each other in terms of products and user experience, new players are emerging with a
focus on differentiation. And not surprisingly, they focus on vertical or niche categories. Heres a look at some of
them.
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Jabong, Zovi and FashionAndYou (Lifestyle): The lifestyle categories consist of apparel, shoes, jewellery,
accessories and home dcor and accounts for a massive 45% of the entire e-retail market. With the acquisition of
Myntra, the prominent players are Jabong, Zovi and FashionAndYou. They continue to face enormous competition
from the horizontal players such as Flipkart, SnapDeal and Amazon that are focusing on fashion more and more.
Jabong has been in existence since 2012 and follows both an inventory model and a managed marketplace model.
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Jabong has been in existence since 2012 and follows both an inventory model and a managed marketplace model.
On the other hand, Zovi designs and manufactures privately labelled lifestyle apparel and accessory products that
it sells exclusively online. Lastly, FashionAndYou is a marketplace that operates in a flash sales model, offering
products from retailers at discounts for only a limited period.
CaratLane, Voylla and BlueStone: Bluestone has an end-to-end approach to selling jewellery online that involves
designing and manufacturing themselves. It also has a just-in-time manufacturing model where the jewellery is
manufactured within days of an order being placed. Caratlane too designs and manufactures its jewellery in-house,
but also has a marketplace model for solitaires sourced from vendors globally. While CaratLane and Bluestone sell
precious jewellery, Voylla deals largely in imitation jewellery though an inventory-led model.
Cbazaar, IndianRoots and Craftsvilla (Ethnic Lifestyle): An emerging trend is niche players dealing in ethnic
lifestyle products that have a huge demand outside India in the international market. Three of the prominent
players in the space, Cbazaar, IndianRoots and Craftsvilla, have over 50% of their sales of ethnic apparel, home
furnishing, home dcor, jewellery, bags, etc. originating from abroad. Notably all of them work in a zero-inventory
marketplace model.
LimeRoad and Xarato (Social Shopping): Another recent trend is social shopping where shoppers friends become
involved in the shopping experience. There are two only players in India that have integrated social shopping into
the online product discovery and purchasing experience: Limeroad and Xarato* and many more. Both are lifestyle
category marketplaces and differentiate themselves from the rest of the competition by providing value to
customers through superior user experience. They have set the benchmark for the next generation of e-commerce
sites with social baked in from the start.
*About the author:
Indrashis Ghosh, Head of marketing at www.xarato.com, Indias social shopping marketplace. Indrashis has over 12
years of experience in the IT industry and is an MBA from IIMK in Marketing & Strategy.
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