Paytm will soon foray into the premium space by introducing an online as well as mobile e-commerce platform for the luxury products alone, claim the sources familiar with the matter.
The digital payments company Paytm backed by Alibaba has roped in marquee brands such as Fendi, Gucci, Blueberry, and Furla for the mobile luxury platform called Anasa. They stated that the e-commerce company is courting more brands as well.
However, the company spokesperson as stated that the firm is not in the plans to enter the luxury e-commerce segment right now. But, the sources state that Paytm refers Anasa as the first of its kind premium mall on the mobile platform that can offer the right environment as well as market positioning in order to showcase the luxury brands. Especially, these brands will be aimed at the high net worth individuals.
As per the sources that are familiar with the development, the firm is reaching out to the Indian retailers of the premium brands for the platform called Anasa. A few luxury brands operate via joint venture arrangements in the country and most have the distribution and marketing agreements with the retailers in the country.
The e-commerce segment is booming in the country, but the online luxury purchases are at the nascent stage due to the challenges. The major challenges include validating the credibility of the brands as well as the ticket size of the transactions that are made.
Snapdeal acquired the luxury fashion portal Exclusively.com in the last year. The portal retails creations of reputed Indian designers including Tarun Tahiliani, Manish Malhotra, JJ Valaya, Rohit Bal, and Ritu Kumar. The other websites that sell premium brands are Darveys and RocknShop.
As per the Euromonitor international, the luxury Indian goods market is anticipated to grow over double in the next five years reaching Rs 390 billion from the value of Rs 163 billion in the last year. This is a 19 percent growth year on year.
Right now, Paytm sells products under different categories such as accessories and mobiles, apparels, toys, home and kitchen, and electronics.
