If a disruptor never conforms and is forever disrupting and going against the grain then ShopX is it. The ecommerce retailer is one of the few ecommerce retailers (ShopClues partners with them as well to reach beyond the metros) fully committed to bringing the majority of Indian living outside metros online to shop. In a way they are democratizing online shopping by making it easy for 2,3 and rural dwellers, kirana stores and vernacular speakers to come online and be a part of Digital India they too must be hearing a lot about.
Amit Sharma is CEO and cofounder of ShopX, which by the way is backed by Nandan Nilekani (of Infosys cofounding and Aadhaar fame). Amit discusses what that special X factor of ShopX is.
How does ShopX give more power to retailers of Tier 2, 3 and those beyond the metros?
While e-commerce in India is catching up rapidly, it contributes only 1.5 percent to the 650 billion dollar economy. That’s how low ecommerce penetration is outside metros. The ecommerce giants of India are targeting the same 40-50 million active Internet buyers in India but there is a much larger audience waiting to be tapped.
And what’s this about technology with a ‘human touch’?
While consumers in metro cities enjoy the luxury of browsing and buying products online, in Tier 2 and 3 cities consumers predominantly rely on nearby retail stores. Research indicates that the 600 million middle-income mass market in India are not comfortable in speaking in English and are still not sure about shopping online. They prefer buying at local stores because they have built trust and comfort through regular transactions. Technology with a ‘human touch’ can familiarize these markets with new shopping experiences with local kirana stores and small retailers to emerge as the right channel for new innovations.
Finally help demystify ShopX’s ‘Digital Offline’ model
In recent times, various international aspirational brands have aggressively focused on strengthening their reach beyond metro markets. The ‘digital offline’ model of ShopX has offered a win-win situation as retailers in Tier 2 cities can expand their product offerings while various aspirational brands are able to strengthen market outreach.
Using our proprietary technology platform, we bring retailers onto a nationwide distribution network that allows them to benefit from technology, and offer an array of products and services. Through the ShopX app, we are disrupting the traditional retail ecosystem with a differentiated approach. The app enables the retailer to offer a better experience to its consumers, which benefits the retailer with increased income opportunities. We enable retailers to earn 30 to 40 percent more than the traditional retail model.
Today, ShopX has over 45,000 retailers in 230 towns across ten states on its platform, and doing more than 20,000 physical transactions every day. Since May 2015, it has served more than one million customers, making us one of the fastest growing startups in the country.