Next 5-10 years e-commerce story around value lifestyle segment: Snapdeal CEO

Snapdeal is gearing up for substantial growth in the 'value' lifestyle segment of e-commerce over the next 5-10 years. Focused on unit economics, quality checks, and leveraging AI and technology to enhance customer experience, Snapdeal believes it can secure a significant share of the growing market. The company's CEO, Himanshu Chakrawarti, highlighted that Snapdeal's business metrics in the value e-commerce category are favorable, prompting a reinvestment in growth as profitability becomes achievable.

Chakrawarti expressed optimism about the upcoming festive season, anticipating a 25-30 per cent surge in demand. With estimates suggesting the value lifestyle retail market in India will grow from USD 88 billion to $ 175 billion, Snapdeal aims to tap into this vast opportunity. The company's strategy revolves around focusing on unit economics and the customer proposition, aiming for a decent share of the evolving market.

Snapdeal, which underwent a successful resurrection with its '2.0' version, emphasises the importance of quality in its product offerings. The platform targets consumers in tier-II towns, particularly those new to e-commerce, with a focus on categories like men's wear, women's ethnic wear, footwear, and home products. Leveraging AI, ML, and data science, Snapdeal aims to enhance the customer experience and has implemented stringent quality measures to ensure transparency and customer satisfaction.

While Chakrawarti acknowledged the presence of competition with deep pockets, he believes that Snapdeal's emphasis on honest pricing and quality control will attract customers, making them return to the platform. The company, catering to 97% of pin codes, plans to expand its offerings in southern India and widen its regional focus.

Snapdeal's strategic approach involves balancing profitability with reinvestment for growth, and with the company nearing profitability, it is poised for substantial expansion in the coming years. Chakrawarti revealed that the past six months have been positive, and Snapdeal is gearing up for a crucial festive season.