Snapdeal shuts Exclusively.com; To undertake strategic review of its investments
By Biswarup Gooptu, ET Bureau | Aug 17, 2016, 07.53 PM IST
NEW DELHI: Online marketplace Snapdeal has shut down Exclusively.com, the premium and luxury portal it acquired last year, and is also believed to be in the process of undertaking a strategic review of its investments made by it over the last two years.
While the company did not explicitly state that it had shut down the premium and luxury portal, in a statement issued on Wednesday, it said it has “completed the integration of Exclusively.com,” and the entire catalogue of the luxury and premium fashion portal was now available on Snapdeal, and will be fulfilled through the ecommerce marketplace’s logistics network.
“This integration will ensure a wider access for the fashion and lifestyle products available on Exclusively, as now all Snapdeal users will have access to the same. This move comes as Snapdeal adds more depth and brands to the fashion category,” the company-issued statement said.
While Snapdeal has indeed been looking to streamline its fashion category for some time now, by bringing it under a common umbrella, the decision to shut Exclusively.com also comes weeks after it was out-maneuvered by rival Flipkart-owned Myntra, which snapped up Jabong for a mere $70 million last month.
Post the acquisition, the Myntra-Jabong combine is believed to hold a market share of 70 per cent of the high-margin Indian online fashion category.
According to a report released by Google and AT Kearney in June, the broader lifestyle category will contribute 35 per cent to overall online spends in the country, thereby overtaking consumer electronics as the largest online category by 2020.
According to data sourced from Forrester Research, the online apparel, footwear and accessories category is expected to cross $5 billion in 2016. However, premium and luxury fashion goods account for less than 5 per cent of the overall segment.
“It is now a fight between Flipkart, which owns Myntra and Jabong, and Amazon. The rest have a small share, and I don’t think there was much benefit in continuing to operate a business like Exclusively.com,” Satish Meena, forecast analyst at Forrester Research.
“Also, the orders for Exclusively.com hadn’t really picked up,” Meena added.
Snapdeal had announced in acquisition of Exclusively.com in February last year for an undisclosed sum, as it looked to further strengthen its fashion business
In July last year, Snapdeal had named Amit Maheshwari as the new chief executive of Exclusively.com. Prior to this appointment, Maheshwari served as senior vice president of fashion at Snapdeal, and played a critical role in growing the online marketplace’s lifestyle and fashion category.
In June earlier this year, Exclusively.com had also launched its mobile app.
Additionally, the SoftBank Corp, Foxconn and Alibaba Group-backed company is also believed to be undertaking a strategic review of its investments, including acquisitions, which it has undertaken over the last 24 months.
Earlier this month, ET reported that the founders of RupeePower, the digital financial services platform in which Snapdeal had picked up a majority stake for about Rs 15 crore in April last year, took back control of the company, as both look to pursue independent strategy in the financial technology space.
Separately, Snapdeal also walked away from acquiring third-party logistics venture GoJavas, which was also its largest delivery partner, and a company in which it had invested Rs 273 crore to acquire a 42 per cent stake.
Responses to an email sent by ET to Snapdeal did not elicit a response at the time of going to press.