May09,2016: Being India’ s largest mobile wallet, Paytm partners with with more than 1,000 brands including Puma, Samsung, Samsonite, Casio and Lakme to enable them to open their online stores on its ecommerce platform.
The Vice President of Paytm , Amit Bagaria said “True power of online platforms is in connecting sellers and brands directly with the end customers. The platform that we have created for brands gives them complete control of their online presence”.
It is believed that Flipkart’s attempt of wooing some of the most-popular electronic and apparel brands including HP, Wildcraft, Peter England, Bosch and @Home with a new offering that allows them to create ‘stores’ on its digital marketplace has to lead to this announcement.
Paytm perceives and states that online brand stores are independent online retail stores wherein brands can control sellers who are selling in their store, inventory, pricing and promotions. This will also endow them the opportunity to run promotional campaigns and tag their physical stores, enabling them to generate sales for their offline channel through this online store.
Bugaria also adds, “From a customer perspective, the shopping experience on these stores is far superior, since the brands directly engage with customers, just like in offline stores”.
Harminder Sahni, founder and managing director at retail consulting firm Wazir Advisors, said: “Marketplaces are like stores. Brands are realizing there is no reason to have another retailer in between for their online presence”.
The real benefit can be reaped when there is no one in between.” Even from the regulatory point of view, with marketplaces not allowed to control prices, this move falls in line” Sahni said.
Paytm will also let its sellers who are not authorized by the brand to compete through their own seller store outside the brand store. Bagaria says “This is a true reflection of what happens in the offline market as well”.