 "Snapdeal")
Online marketplace company Snapdeal wants to significantly expand its fast-moving consumer goods (FMCG) vertical in 2016 after witnessing a surge in demand. At present, the company stocks around 60,000 stock-keeping units (SKUs) or number of products across its FMCG platform. It plans to take it to a million products in the next two-three months, according to Rahul Taneja, vice-president of category management.
Snapdeal since July 2015 has witnessed a 50 per cent surge in month-on-month sales of FMCG products.
"We are seeing a drastic rise in the sale of products such as premium shampoos, skin care items and products from international brands. The month-on-month sales have been increasing and customers are asking for more premium items. This is a huge opportunity for us," said Taneja. Although, the FMCG vertical's overall contribution to Snapdeal's revenue is at present in single digits, the company believes in the next two to three years, the company would start earning revenues of between 20-30 per cent only from the FMCG category. According to the company, the portal has seen an increase in demands of both food and non-food FMCG items. Skin care products from companies such as Olay, Nivea, homecare products from companies such as P&G, Hindustan Unilever and Reckitt Benckiser are drawing maximum sales.
However, Taneja said the firm would not get directly involved in the hyperlocal grocery segment. "What we are offering is a wider assortment of products at great prices and the consumers who are buying from us are ready to wait for at least two days to get their products delivered," added Taneja.
Snapdeal, in September 2015, invested in PepperTap, an on-demand hyperlocal grocery delivery service, along with existing investors Sequoia India and SAIF Partners. Next year, Snapdeal plans to integrate PepperTap's services on its platform. "The integration will happen, but when, we will have to see," Taneja said.
After the re-launch of Maggi noodles on Snapdeal, the company plans to continue the trend and go for more such big bang product launches next year. The online unicorn managed to sell out the first batch of 60,000 Maggi WelcomeKits within five minutes of flash sale.
"We are in talks with companies such as PepsiCo, HUL, Reckitt Benckiser for a couple of launches. In the coming few months, we would do even bigger launches than what we had for Maggi. Also, FMCG companies want to launch a number of products on our platform that are available in other countries, but not in India," said Taneja.
The other verticals which have witnessed a rise in demand on Snapdeal are child care, and women's fashion.
