Aiming to make its private electronic accessories label, Digimate, profitable by the end of the current fiscal, online marketplace ShopClues plans to introduce more products, including earphones and bluetooth speakers, under the brand.
“Digimate was launched in November 2017 to cater to the growing demand of mobile and laptop accessories. Digimate, in the short span of four months, has contributed to about 10% of ShopClues’ electronic business,” said Ritika Taneja, Head - Category Management.
While Ms. Taneja did not share the figures, she added that electronics contributed 35% to the firm’s overall revenue.
ShopClues, in a statement earlier this year, had said its total revenue increased by 45% to ₹275 crore in 2017-18 from ₹189 crore in the previous fiscal. It also narrowed down its losses to ₹208 crore in March 2018 from ₹332.65 crore in the year earlier month.
“The market for private labels is growing as margins are very less in most of the business. We created Digimate to fill existing gaps in the market. For example, not many players are there in the OTG adapter category, and we sell about 55,000 units monthly,” Ms. Taneja said. An OTG adapter enables a user to attach a pen drive/memory card to a smart phone.
Besides the OTG adapter, the firm currently sells power banks under the Digimate brand. “Power bank is probably one of the most used mobile accessory. The current market size of power banks in India is around 750,000 pieces per month, while the online market share is estimated to be over 380,000 units.”
More products under the brand such as earphones, bluetooth speakers, cases and cover, will be introduced in the next two months.
While ShopClues has an overall market share of 15% of this segment, Digimate has garnered 4% of the online market share. “We are confident of increasing Digimate’s market share to 10% by September this year and ShopClues’ share to about 27% of the online market place,” she added.
Ms. Taneja said that by September, the firm is targeting a share of 22% in the overall online electronics accessories market, which is estimated to be about ₹1,200 crore.
Other exclusive labels by ShopClues are Home Berry (home and décor label) and MEIA (workwear apparel for women).