Snapdeal spends Rs 200 Cr on re branding and marketing activities
Snapdeal launches their new logo today. This new logo is vermello (a shade of red) instead of the existing blue and red combination.
“There are 50-60 million online buyers in India currently and for e-commerce to become larger, the next 300-400 million people coming online would be very important… Things like discounts, fast shipping, functional benefits are already there, but going ahead, e-commerce brands will have to stand for something of a higher order,” Snapdeal Co-Founder and Chief Executive Officer Kunal Bahl said.
Mahesh Murthy, Entrepreneur, Investor and Mentor calls this a paint job for Titanic.
Among the top e-commerce players, Snapdeal stands at number 3 after Amazon and Flipkart. Flipkart (through its brand Myntra) has recently acquired Jabong for $70M (Equivalent to Rs 450 Cr) to become market leader. Flipkart ranks second and they are trying to beat Amazon. Amazon Indian in 3 years becomes the leading e-commerce company.
While Snapdeal spends half that amount to come up with a new less colorful logo. Apart from this, their logistics have been improved for timely delivery of products. Nowhere did they mention that they would ensure genuine products from vendors. In 2014 when Samsung launched their Galaxy S phones through Snapdeal, customers found stones and bricks in the received sealed boxes.
Snapdeal has more than 50 million traffic and with the new branding activities, they want to capture 100 million users than will come aboard the digital platform in the future.
Personally I feel the old logo is much better since it’s more colorful. The new tag of “Unbox Zindagi” is good but not worth Rs 200 Cr.
Only in time we will know how well this Rs 200 Cr campaign will turn out, especially when funding in e-commerce is becoming tight.
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