Apart from its trendy catalogue that’s a hit with buyers, the Chinese online retailer has a strong supply network given that it started off as a data analytics platform for manufacturers. Over time, it has aggregated a database of over 100,000 suppliers and reaches shoppers well beyond India’s metropolitan cities.

Changing consumer habits, too, have helped it. The market is now evenly spread between monthly shoppers, users purchasing on need-basis, and those triggered by offers and promotions. Discounts not being the sole trigger is a major shift in motivation in online purchases.

Flipkart and Amazon installations are mostly driven by grand festival offers. However, Club Factory focuses on affordable range of products and charging zero commission from sellers.

As competition stiffens, “Flipkart and Amazon shall have to reorient and lead the space through new technology interventions and move beyond catalogue selling,” techARC noted. “They shall have to bring in more immersive experience to the overall shopping process.”

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.