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Justdial to launch B2B sellers platform JD Mart soon

Justdial’s B2B e-commerce platform JD Mart will be launched soon, company executives said on an investor call on Monday for the company’s Q3FY21 earnings report (quarter ended December 31, 2020). Retailers, distributors, and any kind of B2B supplier will be able to list their products on JD Mart, and also avail of hyperlocal, national, and international logistics services.

Justdial’s operational revenues fell 28% YoY to ₹169.5 crore in the quarter, traffic also fell over last year but improved marginally over the previous quarter. However, monthly monetisation levels stand at 80% of pre-COVID-19 levels.

The company plans to hire for sales and expects headcount to rise in next quarter, since India has largely reopened and local trains have recommenced in Mumbai. “We have been accused of being a profit obsessed company, there will be a change in the categories. We will be more invested in our products and invest in marketing in the coming months,” founder and CEO VSS Mani said on the earnings call.

Pricing and targets for JD Mart

Pricing of JD Mart packages will depend on category and geography, Justdial CFO Abhishek Bansal said. In Tier 1 cities, packages will start from Rs. 25,000, the unit price for each inquiry will be lower. A basic JD Mart subscription will provide a business with a comprehensive product catalogue, a JD-verified stamp depending on qualification, and an assured number of inquiries for amount paid. Even though some vendors are willing to spend much more than others who may be very localised or industry-specific, the company is starting with one standard offer price to begin with.

VSS Mani said that key interest is to have every B2B vendor to participate in this marketplace. There can’t be too much convergence in short-term, but we should have significant numbers of paying B2B vendors. 

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  • JD Mart is solving a problem of many B2B vendors looking at a more effective way of promoting and distributing their products. As the product progresses and JD Mart starts catering to a business’s needs, adoption rate should be much higher and it should result in commercial gain for us, Mani said.  
  • It’s not just about reaching out to businesses, but capturing every detail about the products in every possible way, as much content, photos, videos, minimal order, quantities, price, etc. 
  • Vendors will typically invest in making sure that they get leads. Businesses are willing to spend money because that is the bare minimum to grow their business, but we have to ensure that we offer value to them. 

Ad spends and campaigns should improve traffic in future

Justdial traffic fell by 15.6% YoY to 132.6 million unique visitors, but improved 1.5% QoQ. The company only spend Rs 80 lakh in last quarter on advertisement spends, most of which was spent in December. The decision to limit them was not due to COVID-19 impact, instead, the company wanted to align ad campaigns around JD Mart’s launch. “We are working on new ad creatives, revamped campaigns for JD overall and campaigns for JD Mart will be coming soon,” Bansal said. In this quarter, 50% of traffic came from Tier 1 cities and the rest from Tier 2 & 3 cities. Tier 2 & 3 cities contributed to 30% of revenues, and 55% to paid campaigns. Organic traffic are now at higher levels compared to pre-COVID by 8-10%.

Justdial-IndiaMart dispute: In November, IndiaMart obtained an ex-parte order from the Delhi High Court, where the court said that the JDMart should not have any third-party proprietary content. Bansal said there is no restriction on launch of JD Mart, whose app and website are being developed; since the platform is yet to be launched, there is no question of commercial exploitation having taken place. Bansal said there has been no copyright violation, and that it will become clear after JD Mart launches.

Earnings Call Video

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