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12
September 2016
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Snapdeal(The Total
Investment & Insurance Solutions)
With e-commerce already on shaky
ground, the report that Snapdeal, a major player in the business, plans to burn
a massive Rs200 crore on rebranding and marketing has caused a flutter. The
e-commerce company launched its re-branding exercise with an expensive splash
in the largest print daily. The irony of this seems lost on those making the
funding Snapdeal's ambitious agenda to woo around 10 crore potential online
buyers with a new logo. The company, which was set up in 2010, has changed its
logo twice in its short six-year existence. The Total Investment
& Insurance Solutions
Kunal Bahl, chief executive and
co-founder of Snapdeal is quoted by media as saying, "There are about 5 to
6 crore online buyers in India currently and for e-commerce to become larger, the
next 30-40 crore people coming online would be very important... Things like
discounts, fast shipping, functional benefits are already there, but going
ahead, e-commerce brands will have to stand for something of a higher
order". It is not clear how re-branding is going to help any of it. The Total Investment
& Insurance Solutions
Mahesh Murthy's acerbic tweet
calling it a "Rs 200 crore for a new paint job on the Titanic"
probably captures the sentiment best. Murthy, founder of Pinstorm and venture
capitalist triggered a storm of comments suggesting that this was Snapdeal's
last hurrah. Some even compared it to housing.com funded by the same venture
capitalist, which has all but sunk. The Total Investment & Insurance
Solutions
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| Mahesh Murthy (The Total Investment & Insurance Solutions) |
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Acerbic tweet (The Total Investment & Insurance
Solutions)
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The re-positioning by Snapdeal comes
ahead of the festive season. Other big players and Snapdeal's competitors like
Amazon and Flipkart are also lining up offers to woo customers to shop on their
platform. The
Total Investment & Insurance Solutions
Snapdeal has done away with its blue
and red logo, replacing it with a Vermello (red)-coloured box. The Total Investment
& Insurance Solutions
The rebranding campaign of Snapdeal
is conceived by Prasoon Joshi and his team at McCann while Shankar, Ehsaan and
Loy have worked on the jingle.
A tweet about a quartz India
articles says, Snapdeal needs more than just cosmetic surgery.
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A tweet about a quartz India articles (The
Total Investment & Insurance Solutions)
Basically, it asks how a change in
logo is going to attract new customers to the e-retailers' growth, which
appears to be flagging across the industry.
Earlier in February, Snapdeal, in
fresh funding, raised $200 million from investors led by Canada-based Ontario
Teachers' Pension Fund, venture capital fund Iron Pillar and others. Last year,
it had raised $500 million from Chinese e-commerce Alibaba group, Foxconn
Technology group and Softbank group, its existing investor.
Snapdeal is promoted by Delhi-based
Jasper Infotech Pvt Ltd, and have over 2.75 lakh sellers who sell more than
three crore products on the online platform.
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Delhi-based Jasper Infotech Pvt Ltd (The
Total Investment & Insurance Solutions)
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According to a report from Live
Mint, Jasper Infotech reported losses widening to Rs1,328.01 crore for the year
ended 31 March 2016 from Rs264.6 crore previous year as it spent heavily to
maintain its market share amid growing competition from Amazon and Flipkart.The Total Investment
& Insurance Solutions
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