Snapdeal Owned Store Shopo To Shut Down From Tomorrow
Shopo, an offline store owned by Snapdeal will no longer be operating from tomorrow 10/02/17, as it is officially going to wind up its business. The store was taken over by Snapdeal almost a year ago had assisted over two lac sellers to groom their online stores.
The main aim of this Snapdeal owned store was to capture the C2C market and creating opportunities for sellers to meet and do business transactions to help each other. The idea from Shopo was brilliant and it had a great vision but due to cost-cutting issues, it is going to shut down.
There was news in 2015 when Snapdeal officially announced a major capital investment of 100 million to take over the new consumer markets for upcoming two years. The E-commerce business which is day-by-day growing with more users buying or selling products online has set the online platform to take over the offline markets.
Snapdeal had earlier pumped in 200 crores to revamp its business mode. It will continue to operate in the online space and continue operations as usual. However, we will no longer be seeing Shopo operating in the C2C (Customers to Customers) segment from 10/02/2017.
The officials of Snapdeal in a blog post said they are going to wind Shopo business for now and concentrate on the online E-commerce business. They also said it will take time for the company to have sufficient manpower and huge capital investment.
It is amazing to continue with Shopo but there are steps taken specially to take special decisions that will help the company with larger profits. Snapdeal had taken a massive decision to stop its fashion exclusive online store due to a stiff competition from Myntra earlier in the year 2015.
With this strategic move by Snapdeal, the company is hoping to gain massive popularity in the E-commerce segment. They are concentrating only on one business that is the online store. There are several reasons for shutting down Shopo and absorbing the employees and one of the reasons being the cost element.