7 months ago
DealShare pivots to consumer retail, faces stiff competition
DealShare is a company that used to sell products to other businesses.
Now, it's changing its strategy to sell directly to customers.
The company is focusing on offering good quality products at lower prices and delivering them quickly.
It's also expanding to new cities and investing in its own brands.
However, this change is risky because there are many other companies doing the same thing, and it's hard to stand out.
DealShare hopes that its own brands and focus on value will help it succeed in this competitive market.
DealShare is transitioning from a B2B model to a consumer-facing value retail model with private labels and two-hour deliveries.
The company plans to expand beyond Jaipur and Kolkata to nearby cities in Rajasthan, West Bengal, and Uttar Pradesh.
DealShare faces stiff competition from retail heavyweights like DMart, Reliance Retail, and quick-commerce players like Blinkit and Zepto.
The company's private labels, such as Chemko and Sampoorti, currently account for about a fourth of its revenue.
DealShare's operating revenue plummeted 75% year-on-year to ₹500 crore in 2023-24, but it managed to cut losses to ₹167 crore.
- Who
- DealShare, an e-commerce firm previously focused on B2B, is now pivoting to a consumer-facing model.
- What
- The company is shifting its strategy to value retail with private labels, aggressive pricing, and two-hour deliveries.
- Where
- DealShare is expanding beyond Jaipur and Kolkata to nearby cities in Rajasthan, West Bengal, and Uttar Pradesh.
- When
- The transition began in late 2023, with significant changes in leadership and operations.
- Why
- The pivot is driven by the realization that the B2B model is not scalable profitably, and the company aims to tap into the growing quick-commerce market in India.
Key facts
- Company
- DealShare
- Founded
- 2018
- Current CEO
- Kamaldeep Singh
- Previous Model
- B2B (Business-to-Business)
- New Model
- B2C (Business-to-Consumer)
- Private Labels
- Chemko, Sampoorti, Home First, X One
- Current Revenue (2023-24)
- ₹500 crore
- Losses (2023-24)
- ₹167 crore
Quotes
Kamaldeep Singh
Chief executive of DealShare
“In our strongest markets, we plan to invest more in private labels as well as expand the number of variants in each category. The idea is to provide good-quality products to customers at a reasonable price. We are seeing a very good response to our private brands because the customers that we are serving are value-conscious and aspirational.”
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“All regions have different consumption patterns. Take North India, for example. With cities like Gurugram having gated communities, the density of other quick-commerce players is very high. But this isn’t exactly the case with smaller cities like Jaipur and Lucknow, and that’s where the real opportunities are.”
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Madhur Singhal
Managing partner and CEO at management consulting firm Praxis Global Alliance
“With organized value players scaling up and quick-commerce platforms blurring the lines between convenience and price, new entrants face shrinking room for error. Differentiation today is less about discounts and more about supply-chain discipline and hyperlocal execution.”
livemint.com
“Our private investments analysis indicates that private labels become meaningfully value-accretive in B2C only after brand-led repeat behaviour stabilizes, rather than at the point of launch.”
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