- E-commerce majors Amazon and Flipkart stand at the first and second position according to data analytics platform App Annie
- Snapdeal has called it ‘just hyperbole, with no connection to relevant business parameters’
On Wednesday, Chinese e-tailer Club Factory asserted to have become India’s third-largest shopping app, replacing Snapdeal, in terms of monthly active Android customers.
The approach to concentrate on local SMEs has been a major growth driver for the latest achievement of Club Factory and has further reinforced its position to become India’s leading local seller marketplace and give the best price to its users.
“After experiencing fast development and achievement in India, we are now looking forward to an age of FAC (Flipkart, Amazon, Club Factory) being the future of India’s e-commerce industry,” says Vincent Lou, Founder and CEO, Club Factory. Our objective is to promote a fair marketplace that benefits both vendors and buyers. With our 0 percent commission approach, we further empower local SMEs in India and also make substantial investments in the ecosystem to satisfy greater customer requirements. Our new Mumbai warehouse has lately been opened to satisfy the enhanced customer requirements for quicker shipment of products.
Club Factory announced last month its fresh policy of scale-up with plans for more than 10,000 vendors in 2019 on board. Club Factory argues within two months of the announcement that the e-commerce portal has attracted 5,000 vendors. Vincent Lou added, “Currently, 70 percent of orders are performed from SMEs in India with a powerful focus on locally manufactured products in India. Also, the total order volume has risen considerably by over 100 percent since the start of this year, following the adoption of the local marketplace approach.
Club Factory has launched its Sellers Recruitment Program for pan-India sellers offering lifestyle, fashion, accessories, gadgets & electronics and categories of home goods. According to the business, the program helps vendors make use of marketing fee waiver and zero commission to obtain cost savings of 20-30 percent compared to selling on other platforms, whose advantages are passed on to the customer.
Club Factory also conducts training and provides on – the-platform assistance to vendors. The registration method is currently open to selling any business with a skilled permit.
Club Factory claims the firm intends to construct a suitable e-commerce infrastructure and has partnered with some top-level local logistics players for fulfillment and last-mile logistics room to deliver quicker in India. It utilizes its proprietary big data and AI technology to empower tiny vendors without being able to efficiently evaluate market trends.
On the other hand, Snapdeal has contested the claim of losing its number three slot to Club Factory, saying its monthly active users (MAU) is nearly seven times more than that of the Chinese firm. Moreover, it has called it ‘just hyperbole, with no connection to relevant business parameters’.