ShopClues aims at doubling sales this quarter

Gurgaon-based ShopClues is targeting a 100 per cent jump in sales for the quarter ending December. But while large e-commerce firms are getting ready for a fierce price war this festival season, ShopClues is planning a quiet Diwali to reduce cash burn and focus on profitability. In a move towards profitability this year, the company has slashed the total marketing spend compared to last year.

The company achieved its target of Rs 1,500 crores in sales for the corresponding quarter last year, a ten-fold increase compared with festival sales in 2014. It will spend Rs 2 crores towards helping sellers advertise and offer cheaper credit. Almost 15 to 20 per cent of the total market spend on the Diwali campaign is allocated toward the sellers’ initiative. The company expects half of its five lakh merchants to service orders this Diwali.

ShopClues normally spends Rs 20 to Rs 50 lakh a month on merchant initiatives, with close to a lakh merchants servicing orders on a fortnightly basis. The company, on an average, adds 20,000 new sellers on its platform per month. For any seller to market its product, ShopClues has created various seller services to increase visibility, some of which are paid services. /