Flipkart plans to make its presence felt in some of the lower segments of the online market that may typically appeal to the cost-conscious customers in India. The vehicle for this will be its 2GUD platform that is right now focusing only on refurbished phones, etc. According to an Economic Times report, Flipkart wants to expand this platform to include fashion accessories, beauty products, toys, audio systems, stationery and feature phones. The refurbished product offerings will continue as a separate category or within the appropriate sections.
At a broader level it will cater to the type of buyer who is not brand-conscious but is prepared to buy quality products at affordable prices. The move will also pit 2GUD directly against the likes of Snapdeal, Paytm Mall as well as some of the Chinese companies occupying this slot, such as Shein, Club Factory and Ali Express.
“This is a key pivot for us, and we are committed to building this as an independent brand,” ET quotes Chanakya Gupta, Head of 2GUD as saying.
If you take the fashion segment, you will have Myntra and Jabong catering to the top segment of the market while 2GUD will take care of the products and brands that are perceived a grade lower.
According to a PTI report, 2GUD has catered to a million customers from over 3,000 towns. Around 60-65% of the orders come from tier II and III markets.
This decision to expand 2GUD in the manner proposed is a departure from the original intent the site was built for.
However, it might prove to be a blessing in disguise and any player with feet planted on different segments of the product mix will find its market expanding. Over a period, a percentage of the customers on 2GUD could switch to Flipkart and add to the value chain.
Some 100 sellers may hop on to this platform 2GUD by the end of this month. There are around 70 employees handling the functions related to this site.