There has been a lot of buzz around ecommerce space which lead to the funding of large number of companies in the similar space. Several companies not being able to sustain the growth path have left the scene and several have tweaked their business model. Companies are adding additional channels to show growth in the highly competitive market.
Koovs changed its business model several time in the last 2 years since its inception. It started off as a deal site then turned to horizontal e-tailing having presence in large number of categories including electronic products etc. It has again tweaked its model to now branding itself as ‘online fashion store for women’. After trying several models, it has now modeled itself more on the lines of myntra but restricting itself to women and also launching its own branded products.
Firstcry started as an online store for ‘Baby and Kids products’. Later, it launched another online store Goodlife, selling beauty products. Firstcry has now added one more channel for selling products. It has started opening stores in several cities and has been giving franchise for the same.
Clearly, several companies are foraying into unrelated verticals and adding new channels. Is it to increase growth rate by tweaking model and adding new channels or desperate attempt to remain afloat?
The article was first published at www.ecommerceadda.com