Shopsy to Expand Aggressively in South and West of India
Shopsy to Expand Aggressively in South and West of India

Flipkart’s hyper-value e-commerce platform, Shopsy, is planning an aggressive expansion in southern and western India. Shopsy has introduced Tamil, Telugu, Hindi, and English language on its platform to provide a diverse experience for its consumers. To cater to users with low-end phones, the e-commerce platform has optimized its app size.

Walmart-backed Flipkart launched Shopsy in 2021 to compete with rivals Meesho and Amazon Bazaar in low average selling price categories, such as apparel, small electronics, and kitchenware. The March 2024 edition of the 'Grand Shopsy Mela' saw increased seller participation, reporting a twofold surge in growth. The event recorded the highest-ever traffic on its platform, along with a 1.4x increase in users. Shopsy saw 60 percent of its demand from Tier II and III cities, with 41 percent of users being first-time buyers.

Shopsy recently entered the kids' category by launching its summer collection for children. The platform will sell apparel for toddlers and children aged 0 to 12 years, as well as toys, fashion, and stationery. In the coming months, the company intends to expand its children’s product line. It claims that their kids’ collection is already showing high demand from tier II cities like Cuttack, Varanasi, Guwahati, and Muzaffarpur.

Targeting Value-Conscious Shoppers

In an interview with IndianRetailer.com, Kapil Thirani, Head of Shopsy, Flipkart, spoke in-depth about the brand’s growth strategy and the implementation of technology to enhance the platform’s reach and deliver a seamless customer experience.

Talking about the collaboration with actor Sara Ali Khan, Thirani said, “Sara Ali Khan is a girl-next-door celebrity who strongly appeals to Indian audiences through her filmography and other activities. She is also an advocate of affordable shopping, which connects well with our value-conscious shoppers. We have collaborated with her a total of four times, and each campaign has received an incredible response.”

Shopsy’s focus on targeting customers in tier II cities and beyond has led to significant growth. Thirani said, “Our target audience is the value-seeking consumer of Bharat, primarily located in tier II and beyond cities and aged between 18-40. They are price-conscious and seek value for money. They live constrained lives and look to elevate them through online shopping.”

Shopsy thrives in Tier II and Tier III cities across India. The value-driven approach resonates with a large portion of these regions’ first-time e-commerce users, especially in states like Uttar Pradesh, Maharashtra, and West Bengal.

Thirani says, “We are planning to aggressively expand in South and West India. We are getting a great response and will penetrate more deeply to enhance reach and growth.”

 

Beating Competition

According to Invest India, in the fiscal year 2022-23, the Government e-marketplace (GeM) achieved its highest-ever Gross Merchandise Value of $2.011 billion. The anticipated expansion of online shoppers in India is substantial, with a Compound Annual Growth Rate (CAGR) of 22 percent to 88 million in rural India and 15 percent to 263 million in urban India from 2019 to 2026.

With hyper-value e-commerce platforms like Meesho and Amazon Bazaar as competition, Shopsy by Flipkart is focusing on growth in the Indian market. Elaborating on Shopsy’s strategies to stay ahead of the competition, Thirani said, “We focus on four pillars of growth: keeping customers first, building a low-cost supply chain, bringing automation to the CX side, and structurally reducing returns through different return policies. It is a continuous endeavor to provide our value-conscious customers with a vast selection of items at competitive prices within their budget.”

Innovation is Key

According to a report by Invest India, India's e-commerce market is poised for monumental growth, forecasting a substantial surge to $325 billion by 2030. The report added that the nation’s digital economy is expected to reach an impressive $800 billion by the same time. It also forecasts that 60 percent of demand will come from tier II-IV towns and rural India by 2026, driven by the growth of value-e-commerce platforms.

With the growth of the e-commerce platform, Shopsy is continuously innovating to provide a seamless online shopping experience to its customers. Talking about innovation, Thirani said, “Innovation is at the core of everything we do at Shopsy. Continuous innovation and the use of emerging technology have enabled us to reach millions of customers across the country and become the fastest-growing e-commerce platform in Bharat.”

Thirani further said, “Through the regional language interface, we enable our customers to shop in the language they are comfortable with. Currently, Shopsy is available in four languages, including Tamil, Telugu, Hindi, and English, to ensure a smooth shopping experience for diverse consumer groups. We introduced diverse payment options to offer convenience to our customers with various options like cash on delivery, online payments, and UPI transactions for a seamless checkout experience. In fact, our express checkout feature streamlines customers’ purchases, minimizing touchpoints and ensuring swift order placement.”

He explained further, “The ‘Voice Search Integration’ enabled users to search for products simply by speaking to their devices, saving time and effort. From time to time, we optimized our app size, ensuring that everyone, regardless of storage limitations, can access Shopsy hassle-free. Our hyper-personalized feed learns from customers’ shopping behavior, preferences, and location to offer a curated selection of products that meet their unique needs.”

Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading