After getting substantial amount of Investment from TATA,  SNAP DEAL facilitating new market strategy of M&Ms- “Now book your Scorpio on Snap deal.”

 Snapdeal-scorpio

Snapdeal is now offering car bookings. The website has tied up with utility vehicle major M&M for booking the new Scorpio SUV. The new Scorpio, to be unveiled on September 25, is being offered for a booking amount of Rs 20,000. In the automotive segment, Snapdeal currently sells after-market parts, allow wheels and accessories such as audio systems.

Snapdeal brought better result than Mahindra’s own online portal.

 

Car makers are now increasingly tapping customers online as marketers feel that a large part of the segment that buys cars uses the internet on either the computer or mobile.

“This is a very exciting development,” said Arvind Singhal, chairman of retail advisory firm Technopak. “Companies like Mahindra and Tata are now experimenting with online and that is an encouraging sign.”

The reason behind the move
Despite of selling their profitable vehicle  approximately 50,000 units annually, Mahindra is facing threat from a raft of newer, competitively priced models from car makers such as Ford, Renault and Nissan. It is an attempt to cement its dominance in the market by using of an online channel to drive sales volumes.

How it is?

After pre-booking the new Scorpio on Snapdeal by paying Rs 20,000, customers can go to a dealer to make the full payment and take delivery.

Revenue generating e-commerce vehicle.

Revenues of e-commerce players and funding received from investors have been growing phenomenally. Online market place Snapdeal.com, in which veteran business leader Ratan Tata invested in his personal capacity, will be the first e-commerce company in India to turn profitable. One thing is for sure that it will surely be the first e-commerce company to turn profitable in India. This is because of the business model they follow and their commitment to it. Even if FDI (foreign direct investment) opens up in multi-brand e-commerce in the future, they will not start buying any inventory — they never have and never will. “We will not create our own label since that is in conflict with the relationships that we have with other brands. Why would a brand share its product roadmap with us, if we were creating our own products? They will be sceptical of us replicating their offerings and selling them cheaper. We have said no to inventory and private labels and will maintain that position” says Kunal Bahl, CEO,  Snapdeal.

Snapdeal is focusing on building the best online marketplace, along with an ecosystem consisting of sellers, merchants and courier partners.

Priyanka Sharma

iMET Global