It seems the game of E-commerce market is back in a full vigor, thanks to Paytm Mall. In order to strengthen its business, the company is rapidly acquiring stake in several companies including the online grocery company Godrej, Big Basket and is expediting its delivery infrastructure across 25 cities. Even it is planning to spend 1000 crore, to offer discounts to the customers for this festive season. The news confirms that the amount earmarked will be used for marketing, promotions, coupons and cash-backs.
According to the research firm, Forrester, “Amazon India, Snapdeal and Flipkart spent Rs 250-300 crore last year in promoting these (festive) sales.” They further commented that” We anticipate similar spending this year, with Amazon and Flipkart expected to fill the gap created by Snapdeal in terms of spending.”
A sneak peek at Paytm Mall expansion plans
Slowly and steadily Paytm Mall has brought on-board 1000 brand stores and 15,000 brands authorized retailers under its ambit. It further plans to add 5,000 large brands and shops under its umbrella. With such plans in mind, we can conveniently say that Noida based mobile wallet firm, PaytmMall is in a full throttle and it is in a mood to give a stiff competition to its counterparts Flipkart and Amazon, even though the chief operating officer Amit Sinha claims otherwise. Here’s an excerpt from his interview.
“None of these players are our competitors. If you look at it, we are totally against the tide that everybody tries to follow. Our model is totally different. We are busy in building technology and empowering the sellers. Whereas here there are people who actually need large warehouses to store inventory. We instead have partner run fulfillment center sellers can keep products.”
Will it able to make its mark?
Though the company has stepped its efforts into various segments like fashion, electronics, consumer durables, yet the analysts predict that it would be difficult for the new player to make a mark in the fashion segment. Rest, we believe that buyers will indeed have a great shopping experience.