In order to enable multiple brands to open their online stores on its ecommerce platform, Paytm, one of India’s leading eCommerce major ties up with more than 1,000 brands including Puma, Samsung, Samsonite, Casio and Lakme..
Amit Bagaria, vice-president at Paytm said that true power of online platforms is in connecting sellers and brands directly with the end customers. The platform that Paytm has created for brands gives them complete control of their online presence.
The announcement comes a week after top ecommerce player Flipkart said it is convincing some of the most-popular electronic and apparel brands including HP, Wildcraft, Peter England and @Home with a new offering that allows them to create 'stores' on its digital marketplace.
According to Paytm, the online brand stores are independent online retail stores wherein brands can control the sellers who are selling in their store, inventory, pricing and promotions. They will also be able to run promotional campaigns and tag their physical stores, enabling them to generate sales for their offline channel through this online store.
Bagaria said that from a customer perspective, the shopping experience on these stores is far superior, since the brands directly engage with customers, just like in offline stores.
Harminder Sahni, founder and managing director at retail consulting firm Wazir Advisors, said that marketplaces are like stores; Brands are realising there is no reason to have another retailer in between for their online presence.
Sahni said that the real benefit is when there is no one in between. Even from the regulatory point of view, wherein marketplaces are not allowed to control prices, this move falls in line.
Bagaria said that unlike its competitors, Paytm will also let sellers who are not authorised by the brand to still be able to compete through their own seller store outside the brand store. It’s a true reflection of what happens in the offline market as well.