By Gaurav Pradhan
Snapdeal, one of the big players of Indian Online Retail, has acquired Wishpicker which is platform which helps in giving gift purchase recommendations through analytics related to the person which necessary inputs from its social and other profile. This is the fifth acquisition for Snapdeal. Earlier acquisitions were of Doozton (a fashion products site), Grabbon (group purchase site), esportsbuy.com (a sports retailer site) and Shopo.in (a handicraft shopping site).
India is showing promising growth in Online Retail domain with rise of big players like Flipkart, Amazon and Snapdeal. Online Commerce is expected to show a growth in size i.e. from US$ 10 billion to US$ 43 billion in coming five years.
This growth is also coming on the expense of growing demand of customers in personalization and ease of search. It is very important for big players to adjust with this new kind of demand, and devising their platform to focus more on recalibrate their recommendation engines and product categories.
Acquisitions can be a potential weapon for the big players to grow even bigger. In the sight of getting bigger, it might so happen that they will be carrying some elements which won’t add value in future. But at present, because of attracting investors, growth in size is important. Many companies are also targeting acquisitions as a way of consolidating the online retail domain by engulfing every new player in this domain. This will help them maintain a healthy market share along with a sustainable cash flow.
Strategy of Wishpicker acquisition is pretty ambiguous for now, but hope Snapdeal gets more future returns because of the present deal.
(Author is a Management student of IIM Bangalore having an experience in Manufacturing Industry, Follow On Twitter @GauravToYou)
Why Investors are willing to invest on Amazon and Flipkart – Social Media Trend – https://www.socialmediatrend.in/industry/why-investors-are-willing-to-invest-on-amazon-flipkart/
Why Walmart is thinking about Online Retail? – Social Media Trend – https://www.socialmediatrend.in/business/why-walmart-is-thinking-about-online-retail/
Shopping goes a Level Up: Purchase on Social Media – Social Media Trend – https://www.socialmediatrend.in/marketing/shopping-goes-a-level-up-purchase-on-social-media/