Paytm Mall vows big push this festive season for traditional retailers
Paytm Mall said it would generate at least Rs 500 crore in actual sales for its offline brick-and-mortar retailers this festive season. It says so at a time when trader bodies are at loggerheads with Amazon India and Flipkart over the massive discounts during such sale drives.
Paytm Mall is the online shopping platform created by Paytm, the e-commerce payment system and financial technology entity. We have, says the former, been working hard on our omni-channel model. This year, the company believes, most of the ‘leads’ it generates online would convert into sales offline.
Over the past six months, it has worked out massive discount and cashback schemes, with more than 100 brands and major offline retailers. Overall, Paytm Mall says, it is targeting not less than $2.1 billion (Rs 14,900 crore) in gross merchandise value (GMV) for the entire year.
As Amazon India has been doing, Paytm Mall has been concentrating a lot on the market outside the tier-I cities. While these metropolitan areas contribute 35 per cent of its business, the rest comes from elsewhere.
During the festive season itself, the company says it is aiming at $300 million (Rs 2,100 crore) in GMV. It has got on board over 30,000 new retailers and these stores will offer their catalogues on the Paytm Mall app, in-store pick-up, local deliveries and exclusive brand vouchers. The company has dedicated a team to address the needs of offline retailers and help their transition online.
The partnership will help it get new users, strengthen its assortment and expand its reach to the neighbourhood brand outlets. The firm does not own or operate warehouses; instead, it partners with sellers and encourages them to use local courier services for delivery. The target is to, within two years, show a positive figure on operating earnings, by addressing the issue of logistics cost.
“In preparation for the coming festive season, we are aggressively on-boarding retail stores and collaborating with new brands. We have also introduced exclusive brand vouchers...(and) are confident on achieving two-fold growth in our user base during this period,” said Srinivas Mothey, senior vice-president.
In the run-up to the festive sales, Paytm Mall has also broughtn eBay’s global inventory on its platform. This catalogue of over a million products includes categories such as toys, collectibles, fashion, automobile accessories, gifts and decor festive items.
“Paytm Mall is rapidly expanding its World Store which makes international brands available to Indian buyers at its platform. The company also aims to become the launch partner for international brands to cater to the Indian market,” the company said.