To improve penetration in tier III and tier IV towns, Shopclues has partnered with hybrid ecommerce company StoreKing. As part of the deal, Shopclues’ products will be shown in the digital catalogue on the StoreKing app. Customers can browse through the catalogue at franchisees’ outlets and can make purchases with the help of a local shop owners.
StoreKing provides small retailers in Tier III and Tier IV towns a platform to sell their products through kiosks equipped with TV monitors and Android tablets. The delivery of the product is made to the store owner himself who, then, hands over the product to the end customer. The StoreKing agents ensure that customers get assistance in their order placement as well as in cases of return, replacement, or refund requests.
Currently StoreKing has 16,000 kirana stores, recharge points and shops as franchisees. A YourStory report states that the retailers using StoreKing earn a 6-10% commission on the sales they make.
It’s worth noting that Amazon India signed an exclusive partnership with StoreKing in June to expand its rural footprint in south India and increase its user base.
StoreKing raised $16 million from Malaysian telecom company Axiata Digital in June. It plans to expand to 100,000 retailers by next year and 250,000 by 2019, as well as expand to Axiata’s markets in the future. In February last year, StoreKing raised $6 million from Mangrove Capital Partners.
Shopclues raised $100 million in a series E round of funding led by sovereign wealth fund GIC, and participation from existing investors Tiger Global and Nexus Venture Partners. ShopClues is now valued at $1.1 billion. It says that it has over 5 crore items, attracting more than 190 million visits a month. The company claims to have over 4 lakh registered SME merchants.
TV shopping deal
In April, ShopClues and 9XM tied up to launch a show titled ‘Sunday Flea Market’. The show airs every Sunday from 11 am to 1 pm and markets curated products in various categories under Rs 1000. The show will consist of an anchor who will introduce these products, followed by Bollywood songs, in a standard hosted music show format. Users can access these products online on its Sunday Flea Market section, where ShopClues lists a variety of items like shampoos, blankets, pen drives etc.
Image credit: Flickr user StormKatt under CCBY.20