Snapdeal, India's largest online marketplace, announced the acquisition of Exclusively.com, a luxury e-commerce site the company hopes will strengthen its fashion business.
More than 70 percent of Indian consumers want to shop for luxury products at home rather than abroad, according to a KPMG-ASSOCHAM report quoted on the blog. The luxury products and services market in India is growing 30 percent year over year.
"Snapdeal has always operated ahead of the curve in the e-commerce space, especially when it comes to category leadership," Kunal Bahl, co-founder and CEO, Snapdeal.com, said in a statement. "We have witnessed a surge in the demand from consumers across the country for premium and luxury products. However, 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."
The new partnership means Snapdeal is opening up Exclusively's online luxury mall to fashion brands around the world. Sunjay Guleria and Mohini Boparai-Guleria, co-founders of Exclusively, said the timing of the partnership is ripe because Indian shoppers have more disposable income and awareness than before.
Several U.S. retailers, such as Authentic Brands Group, Walmart (NYSE:WMT) and Gap (NYSE:GPS), have expanded into the market with the aim of taking advantage of India's growing wealth, both online and offline. Italian jewelry and luxury goods brand Bulgari opened its first flagship in India just a few months ago.
This is the sixth acquisition for Snapdeal, reported Women's Wear Daily. About 60 percent of the company's total sales come from fashion. Snapdeal hopes to make $2 billion in fashion sales by 2016 as it expands its reach to include Exclusively's more than 150 designer and apparel brands at a higher price point.
-See this Snapdeal blog
-See this Women's Wear Daily article (subscription)
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