SnapDeal 200 Crore Facelift - Too Little - Too Late

Amazon for the last six month showed their calibrated onslaught on Indian e-Commerce startup with open wallet and changed the dynamics of Indian E-Commerce segment. The downturn in funding to e-Commerce companies and valuation marked down by many investor led investor confidence loss on the  business model of Indian e-Commerce companies which relies on discount to generate sale.

The burn rate of Indian E-Commerce segment is too high and there is no profitability in sight. Flipkart lost many high profile resource whereas Snapdeal faced increasing challenge to attract big names to use their platform. It's not important that how many sellers are there on the platform but its more important that how the brands are getting attached with the platform.

Based on the newpaper report, SnapDeal embarked 200 Crore to go for brand facelift so that they attract brands on their portal. It's a fact that most of the e-commerce companies are generating most of the GMV through electronics and the competition is so intense that the chance of profitability is near to zero but to ensure that user buys the product from the platform, e-commerce companies are offering discounts.

SnapDeal also bought many analytical companies to recharge companies in order to integrate it with the central platform to differentiate themselves from the competitors but they failed to achieve the same for one or another reason. They completely failed to monetize their platform through alternative revenue stream and i should say that all the e-commerce companies in India failed in that segment.

The much delayed advertisement blitz is not going to help SnapDeal much to change their fortune but they can do so if they invest half of the embarked budget in enhancing their platform and go full blown user acquisition in disruptive model.

I would love to see Indiane-Commerce companies grow and be successful but the prospects are bleak as the number of buyers on e-commerce portals are limited and still retail segment is very strong.

Even though I wish SnapDeal all the best and hoping that they will come back strongly.

Get Reliance Jio Device from Flipkart and save Mobile Bills

Reliance jio has just launched LYF smartphones at very lowest prize on Flipkart so after buying these smartphones , you will be free for next three months from the mobile phone bills, data bills and much more.This is really a smart move played by Reliance jio in order to sustain profit in current market scenario.

Reliance Jio E-Commerce Plan

Reliance jio is converting into an e-commerce. How it is going to hurt an existing e-commerce like amazon, Flipkart showing in this video.Reliance jio is offering his preview services where they have collaborated with 11 smartphone players so through this they are selling smartphone with free data and calls which will become a problem for other e-commerce sites in coming future.

Smartphone Player's Using Online Portal Based Sell is Going to Lose Market Share in Coming Months in India

Indian Smartphone sell through mechanism is again taking a U turn towards the retail segment. It is a known fact about Indian consumer that they love to get attracted towards the discount and never loses that opportunity. The sudden growth in online segment fueled by investor money and subsequent rush by those online players to attract userbase landed many International as well as domestic Smartphone companies to mint out the sell. The Online industry also understood it well that Mobile Smartphone and accessories is one of the area which will bring user onto their portal and it happened.

The international players more specifically tapped Online companies to enter into Indian market as well as to grab the market share without losing anything. On a contrary, Online companies lost millions of $ to gain as well as retain the userbase.

The slide in online companies funding forced them to reduce the discounting which is now reflecting in their market share going down to 31% from 37 % as per 91mobile.com  published report. Companies like One plus, LeEco, Cool pad, lenovo, In Focus and host of other companies heavily relies on Online companies like Flipkart, Amazon, Snap Deal as well as smaller player for the major chunk of their sale through exclusive launch of their Smartphone through mentioned E-Commerce  portal. The reduction is discounting will neutralize the E-Commerce portal based pricingwith retail pricing.

It is evident that in coming months, Smartphone player's relying heavily on E-Commerce portal will see drastic fall in their sell and it may lead to recalibration of market leaders to laggards

How Indian Startup Turned Into Devil From Darling Within Two Quarter

It is really interesting and surprising to observe the dynamic change of business viability within the investment community towards Startup. It's long before when anyone and everyone want to be part of startup bandwagon with very strong collective voice that India is going to be the center of Innovation, E-Commerce and Service.

Even more shocking that many Ex-CEO of reputed organizations started their investment fund as well as turned into MENTOR role. The virtualized form of publicity funded by big fund players even prompted Indian government to offer multiple incentives to Startup community to ensure that "New era of Employment" culture happens in India.

I, in my personal opinion always stood the other side of the table and kept raising my voice about non viable business case across sectors and many kept on giving me the news about fat E-commerce organization funding news.

One marked down of Flipkart valuation by leading investment firm, turned the perception of investment community about the profitability to sustainability of business

Isn't it laughable; how investment guru's can go wrong in their business model within weeks? That's reminds me of Mr. Rakesh Jhunjhunwala statement about business model sustainability of Indian E-Commerce Companies and that is the reason that he is one of the best in his investments.

It raises few question marks around the handling of business such as lavish office, parties, and promotions, pay package, paid PR.  The investment community kept on investing in those firms even after the gaps being clearly visible in the fear of losing side.

In my point of view, Successful investment assessment happens at Metro Station to Bus Stop to College Campus instead of Air conditioned business lounge of 5 Star Hotel's. Root level market intelligence is the foundation of business model which should be so flexible that it should be refined on the fly supported by the alternative revenue stream.

I really feel bad for the startup for being portrait as Devil from Darling within two quarter for others mistake.

I still believe that lots of good startup is still in the market place but they are not noticed because they don't believe in paying PR cost just to tell the world that they received $100k seed funding :).

It's the right time for the investor to jump in and pick the quality company to average out their losses.