Expanding its presence in the high-end fashion segment, online marketplace Snapdeal has acquired luxury fashion portal Exclusively.Com for an undisclosed amount.
With this acquisition, the city-based firm that gets a little over USD 1 billion in gross merchandise value (GMV) from its fashion business expects this figure to touch USD 2 billion by the end of the current calendar year.
According to industry insiders, Snapdeal’s total GMV — total value of goods sold — is around USD 2 billion at present and fashion business accounts for over 60 per cent of the total volume.
Quoting a KPMG-ASSOCHAM report, the homegrown e-commerce firm said luxury products and services is a USD 14 billion market in India, growing at 30 per cent year-on-year, with more than 70 per cent consumers willing to shop for luxury products in India than abroad.
“With this acquisition, Snapdeal looks to further strengthen its fashion business and reach USD 2 billion in GMV in the fashion category this year,” the e-commerce firm said in a statement.
The acquisition of Exclusively is similar to that of domestic e-commerce firm and Snapdeal’s rival, Flipkart acquiring online fashion retailer Myntra for an estimated Rs 2,000 crore deal in May last year, marking it the biggest consolidation in the e-commerce space in India.
Commenting on the announcement, Snapdeal Co-Founder and CEO Kunal Bahl said: “Snapdeal has always operated ahead of the curve in the e-commerce space, especially when it comes to category leadership.”
He added that there is a surge in demand from consumers across the country for premium and luxury products, however, access to luxury brands is severely limited in the country.
The company has brought Exclusively to provide its over 40 million users access to widest range of aspirational, high-end products and services.
“Under this partnership, Exclusively will complement Snapdeal’s existing ecosystem and will provide a consolidated offering for the luxury and lifestyle shopper, making it India’s first online luxury mall. Luxury and premium fashion brands from across the world can now open stores in Exclusively’s online luxury mall,” Bahl said.