Festival bonanza for ShopClues from North-East

Abhishek Law Kolkata | Updated on January 16, 2018 Published on October 14, 2016

Nitin Agarwal, Head of Marketing, ShopClues

Sees 600% growth in orders from region, on annual basis, during festival season

Marketplace e-tailer ShopClues seems to have hit a jackpot in the North-East.

The e-tailer has seen a near 600 per cent growth in orders from the region, on an annual basis, during the festival season, as against a national average of 90 per cent. Festival season sales of the Gurgaon-based company lasted 10 days beginning October 1.

According to Nitin Agarwal, Assistant Vice-President and Head of Marketing, ShopClues, the company’s highest growth in orders have been from across towns such as Guwahati, Agartala, Shillong, Aizawl, Imphal, Dibrugarh, Silchar, Tezpur and Gangtok.

“The North-East has been the highest growth region for us this festival season. There was a 400 per cent rise in orders in terms of our daily run-rate for the months of August and September. In annual terms, the growth was as high as 600 per cent,” Agarwal told BusinessLine during an interview.

While orders from the North-East comprised 6-9 per cent of total ShopClues orders till almost a year ago; it has now gone up to 10-15 per cent.

The company serves 1,250 pin-codes in the region.

Growth areas

According to Agarwal, growth was primarily driven by categories such as home and kitchen, and lifestyle that includes apparels and footwear. Regional players and products dominated the orders.

A sustained digital campaign (20 per cent of the ad budget had been earmarked for this purpose) along with on-boarding new sellers, seems to have worked in favour of the e-tailer, he said.

The other reason for growth, sources say, has been the firm’s exclusive tie-ups with Original Equipment Manufacturers (OEMs). For example, former camera-maker Kodak launched its TV range in a tie-up with the e-tailer.

“We are not into deep discounting. But we do have the best offerings across a particular price point. For example, we have the best offerings across mobilephones priced between ₹4,000-5,000,” Agarwal said.

Encouraged by the response, ShopClues is now seeing how it can carry forward the momentum. The company will soon undertake a survey to understand the requirements of the region.

“We need to see if this huge growth is sustainable or not.”

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Published on October 14, 2016
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