Gender Focused e-Commerce Websites Getting Funded - What's The Plan?

Kaustubh Katdare · 2013-03-22T17:41:00+00:00

These days, I get surprised whenever an e-commerce website in India gets funded by venture capital firms. It looks like the VCs still believe that there's room for ecommerce websites in India. Yesterday, I read that limeroad.com - a women only shopping portal has raised funds from LightSpeed Venture Capital and now, LadyBush.com has received funding from Germany based Rocket Internet. I wonder why do VCs think gender focused e-commerce portals would be the next big thing? Probably they're betting their money believing that a bigger e-commerce portal will acquire them. In my opinion, most of the ecommerce websites in India are DoA (dead on arrival). But VCs think otherwise. What's the plan, folks?

Gender Focused e-Commerce Websites Getting Funded - What's The Plan?

Kaustubh Katdare
@thebigk

Updated: Oct 25, 2024

Views: 3.8K

These days, I get surprised whenever an e-commerce website in India gets funded by venture capital firms. It looks like the VCs still believe that there's room for ecommerce websites in India. Yesterday, I read that limeroad.com - a women only shopping portal has raised funds from LightSpeed Venture Capital and now, LadyBush.com has received funding from Germany based Rocket Internet.

I wonder why do VCs think gender focused e-commerce portals would be the next big thing? Probably they're betting their money believing that a bigger e-commerce portal will acquire them. In my opinion, most of the ecommerce websites in India are DoA (dead on arrival). But VCs think otherwise.

What's the plan, folks?

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Anand Tamariya

Member • Mar 22, 2013
In my opinion, most of the ecommerce websites in India are DoA (dead on arrival).
I don't agree with this. Ecommerce has huge potential if done right.ie.
- Competitive pricing - Nobody expects discounts always. But don't assume customers won't compare the prices with their nearest brick-and-mortar store.
- Deliver on commitments - if you give a delivery time, stick to it
- Include a variety of products of GOOD QUALITY in each segment so that customer doesn't perceive that brands are pushed onto him - rather he should have the ability to choose.
If these basics are covered, shopping online is better any day than visiting a physical store.
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Kaustubh Katdare

Administrator • Mar 22, 2013
I should have said the new ecommerce websites are DoA. Look at the consolidation happening in the e-commerce. There are websites being bought and the new players are finding it tad difficult to compete with the older, VC funded players.
Anand Tamariya
I don't agree with this. Ecommerce has huge potential if done right.ie.
- Competitive pricing - Nobody expects discounts always. But don't assume customers won't compare the prices with their nearest brick-and-mortar store.
I'd check on that again. Flipkart began their journey by offering stuff at a cheaper rate than competition and amassed a huge 'brand value' in the process. They had VC money to burn. In fact Flipkart didn't break even (I'm not sure if they have by now).
Anand Tamariya
- Deliver on commitments - if you give a delivery time, stick to it
On time delivery isn't an option now. If you can't deliver on time, you'd be dead right away. Flipkart in fact went on to build their own courier service to take care of the delivery. Not an easy thing to do, unless you've loads of cash in pocket.
Anand Tamariya
- Include a variety of products of GOOD QUALITY in each segment so that customer doesn't perceive that brands are pushed onto him - rather he should have the ability to choose.
Looking at the profile of an average online buyer, they'd expect value for money and quality again, isn't an option. Almost every eCommerce player out there is offering almost the same stuff - at same price or a few bucks plus or minus. Check out this discussion on CE that talked about the latest prices Flipkart's offering - <a href="https://www.crazyengineers.com/threads/flipkart-prices-going-up-heres-a-price-comparison-chart.54461">Flipkart Prices Going Up? Here's a price comparison chart</a>
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Anand Tamariya

Member • Mar 22, 2013

Ecommerce has potential - whether new ecommerce websites have potential is difficult to fathom unless you know their biz model. And yes, burning VC money to build brand is not the way. In ecommerce, you have to focus on creating efficiency in logistics and supply-chain keeping the basics (listed above) as constant. That's why ecommerce is more about retailing than just creating websites and offering discounts.

And I'd give competition and new player it's due -do you remember :
- how many search engines were there when Google came into being.
- how many web based emails were there when Gmail made it's entry.
- how many chat clients were there when Yahoo messenger gained prominence.

Simply hoping these new players learn from old mistakes, learn retailing and then get into this domain.

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zaveri

Member • Mar 24, 2013

The way i see it, this is just an attempt to create gender equality and to create another havoc and ruckus.

if you think this was a step towards women empowerment, then you are mistaken.

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Anand Tamariya

Member • Mar 24, 2013

if you think this was a step towards women empowerment, then you are mistaken.
This is no women empowerment - just creating a niche and targeting one's customer segment.

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