Snapdeal buys Indian luxury online retailer Exclusively
February 18, 2015 12:39 PM
Snapdeal, one of India’s largest e-commerce sites, announced Wednesday it has purchased Indian high-end fashion e-commerce site Exclusively.com.
Snapdeal, No. 47 in the Internet Retailer Asia 500, says with the acquisition it aims to strengthen its fashion business and this year reach $2 billion in fashion-related sales.
Luxury products and services is a $14 billion market in India and is growing 30% annually, according to a recent report from consultancy KPMG and India's Apex Chamber of Commerce and Industry. More than 70% of Indian consumers want to shop for luxury products in India rather than abroad, according to the report.
With the acquisition, Exclusively will continue to operate as an independent site. Snapdeal says Exclusively.com will add features and delivery options soon. Snapdeal says its nationwide reach, size and technology resources will help Exclusively scale to meet Indian shoppers’ desire for luxury goods.
“We have witnessed a surge in the demand from consumers across the country for premium and luxury products. Given that access to luxury brands is severely limited in our country, we have brought Exclusively into our family to provide our 40 million-plus users the access to widest range of aspirational, high end products and services,” Kunal Bahl, co-founder and CEO of Snapdeal.com said in a blog post Wednesday announcing the deal.
Exclusively features products from hundreds of Indian designers on its site, including: Manish Malhotra, Tarun Tahiliani, Manish Arora, Anita Dongre, Rohit Bal, Gaurav Gupta and JJ Valaya. It plans to add international luxury brands this year.
“The partnership with Snapdeal comes at the right time. With increased awareness and growing disposable incomes, premium and luxury consumption in India is seeing a significant upward trend,” Exclusively co-founders Sunjay Guleria and Mohini Boparai-Guleria said in the blog post. “With Exclusively’s fashion experience and Snapdeal’s scale of operations, we look forward to not just servicing large metros, but also the aspirational demand in smaller towns across India.”
Snapdeal sold an estimated $321.75 million worth of goods via its site in 2014, up 236% from $95.76 million a year earlier. In February, online marketplace eBay led a funding round that pumped $133.8 million into Snapdeal. EBay previously had invested $50 million in Snapdeal.
Snapdeal’s main rival in India is e-commerce site Flipkart, No. 15 in the Asia 500, which grew its sales 233.33% in 2014 to $1 billion. The Snapdeal luxury play follows one Flipkart made in May 2014 with its acquisition of high-end fashion retailer Myntra for a reported $370 million.