Paytm Mall banks on fashion to drive growth

By

Maverick Martins

Published
Oct 23, 2018

Paytm Mall, the e-commerce venture backed by China's Alibaba Group, is banking on the fashion category to drive growth and focusing on fashion to increase repeat customer transactions as it looks to compete with e-commerce biggies like Flipkart and Amazon.
 

The company, which is currently the country’s third-biggest e-commerce company in terms of sales, is looking to deliver 50% of the orders in 24 hours from 33% right now through its online-to-offline (O2O) model.
 
Paytm Mall had witnessed a three-fold jump in its transaction across categories during its recently concluded ‘Maha Cashback’ festive season sale and had managed to increase its gross merchandise value (GMV) by 30 percent.

Prior to that, Paytm Mall had recorded gross sales of around Rs 1,000 crore in September with about 8 million orders with a majority of the orders coming from the fashion and grocery categories.
 
“During the festive season this year, which started on October 9 and ends with Diwali on November 7, Paytm Mall is targeting gross sales of about $500 million. The company is banking on its offline brand and store partners, who generate 20% of overall offline sales to drive transactions,” Paytm Founder Vijay Shekar Sharma told the Economic Times.
 
“Paytm Mall wants customers who come in once a week, if not daily. We don’t want to be the platform that you come to buy a phone, which you will once a year,” he said, taking a jibe at rivals Amazon India and Flipkart, “They are the market of GMV, we are the market for habit.”
 
Paytm Mall claims to have about 5.5 million daily active users, 80,000 sellers and a product portfolio of 110 million items with an average order value of Rs 1,300.