The good old brick and mortar fashion retail store in your neighbourhood or on your favourite shopping street might be doing significantly less business. The uprising of online fashion retail websites with hard to resist deals and offers, the sales of physical stores are bound to fall.
A day ago our indigenous online e-commerce giant, Snapdeal has finalised a deal to take over the designer brands seller, Exclusively.in. With Flipkart already in the race with its weapon Myntra, Snapdeal will soon join in with Exclusively.in. In December, Snapdeal bought a gift recommendation website, ‘Wishpicker’.
Also take into account the sales of products in other various categories like Electronics, home appliances, and mobile phones, they are doing extremely well. The business is so good that at present leaders in e-commerce business like Flipkart and Snapdeal are holding assets in Billions. Motorola garnered record breaking sales of their smart phones only via online sales.
There is no doubt that this trend is likely to continue. Who wouldn’t want to browse hundreds of options from the comfort of your home or office?
The move to acquire Exclusively.in is a direct result of investments of $627 million from the Japanese telecom and online giant, Softbank.
A while ago the e-commerce race wasn’t concentrated on solely on clothing. But when exclusive online fashion retail sites came up, they started emptying their warehouses. The business was a hit. Noticing this, online giant FlipKart bought Myntra, an online fashion store.
According to spokesperson, Sunjay Guleria, founder of Exclusively.in is in agreement with the deal and the takeover by Snapdeal will be soon done. However the actual valuation number is yet to be released. In 2012 Myntra had bought ‘Sher Singh’ apparel brand from Guleria and co-founders.
At present more than 90 percent visits to the Myntra site is through smart phones and the company is taking a bold step to go mobile only by this year end. Now you can imagine how good the e-commerce biz is. Another major competitor in the online fashion business is Jabong.
Exclusively.com will offer high end fashion clothing brands which are not currently available on other retail sites.
There are many tiny blue chip sites which the giants bet on. For instance Mahindra group recently bought ‘Babyoye’, a baby product online retailer. Amazon too will provide a range of clothing brands too keep up with the trend of online fashion sales. This is the first time Amazon will be making this move.