Shopsy attracts nearly 70% of its customers from Tier II & III regions: Prathyusha Agarwal
Prathyusha Agarwal, Business Head, Shopsy – an e-commerce platform launched by Flipkart in 2021 – speaks about the latest campaign, targeting the value-conscious consumer in Tier II and Tier III cities, growth drivers and more
window.googletag = window.googletag || {cmd: []};
googletag.cmd.push(function() {
googletag.defineSlot('/21740140234/e4m_story_page_para3_small_horizontal_banner_3_728x90_normal', [728, 90], 'div-gpt-ad-1595331589677-0').addService(googletag.pubads());
googletag.pubads().enableSingleRequest();
googletag.enableServices();
});
window.googletag = window.googletag || {cmd: []};
googletag.cmd.push(function() {
googletag.defineSlot('/21740140234/e4m_story_page_para3_small_horizontal_banner_3_728x90_normal_next', [728, 90], 'div-gpt-ad-1601359261569-0').addService(googletag.pubads());
googletag.pubads().enableSingleRequest();
googletag.enableServices();
});
What was the insight behind Shopsy’s latest campaign, ‘Apna Swag, Bina Brand Tag’? Shopsy’s latest campaign, 'Apna Swag, Bina Brand Tag' stems from understanding the needs and perceptions of value-conscious consumers who seek style and quality without the premium price tags. During consumer research, a notable insight emerged: consumers perceive expensive products as high quality. Shopsy taps into this insight by positioning itself as the go-to platform for unbranded products that offers a similar level of style and quality without the added markups. At Shopsy, consumers don’t have to pay unnecessary mark-ups, hence high-quality products are available at affordable prices. With this offering, the campaign challenges the belief that lower prices mean lower quality, highlighting that great quality and affordability can coexist. Can you share the key takeaways from your customer research? At Shopsy, we remain highly customer-centric, engaging in continuous research through online interactions, surveys, and extensive UI/UX studies to refine our offerings and improve the shopping experience. Shopsy attracts nearly 70% of its customers from Tier II and Tier III regions, with 90% of new transacting customers being millennials and Gen Z. These consumers are deeply family-oriented, often purchasing for their entire household and planning their buys around special occasions or sale events. While they recognize the high quality of branded products, they often find them overpriced. At Shopsy, categories such as apparel, beauty, and home are popular, as consumers see significant value in these offerings. The Shopsy customer has evolved to become more discerning, seeking affordability, style and quality in their purchases. Consumers are increasingly aware of e-commerce and consider factors beyond just the price point, such as value for money and selection. How would you define your TG? The primary target audience for Shopsy is the value-conscious Bharat e-shopper who is currently not an e-commerce native. The customer profile consists largely of millennials and Gen Z, who are tech-savvy and seek the best value for money. As I mentioned before, 70% of Shopsy’s business comes from Tier II and Tier III regions, with Tier III cities contributing over 60% of the total customer base. This significant contribution underscores the importance of these regions in Shopsy’s overall business strategy and highlights the platform's success in catering to the needs of value-driven shoppers across a broad geographic area. ‘Apna Swag, Bina Brand Tag’ is a 360-degree campaign that was launched across TV, Social Media, and Digital platforms, to grow Shopsy’s brand presence and engagement. In the days leading to the launch, a video clip of Sara Ali Khan’s outfit spill on an airplane that was part of the campaign took the internet by a storm. This video sparked a conversation on the expensive-looking outfit and possible damages. Netizens anticipated an angry reaction from Sara but in a surprising plot twist after 48 hours, Sara remained effortlessly cool and revealed that her outfit is actually from Shopsy and unbranded! - bringing alive the fact that stylish, good quality outfits needn't always be expensive. The video went across social media as well as news publications, garnering hundreds of millions in reach. Where do you see your future growth? I see Shopsy as one of the top destinations for value-conscious consumers seeking quality products. The growth drivers are as below: a. Customer-centricity focussed on solving for the needs of Bharat e-shoppers We primarily target low-affluent, value-conscious consumers across the many Bharats – the platform is dedicated to providing affordable and appropriate product ranges for their diverse needs, and its unique endless aisle feature ensures that product discovery is effortless. The personalized feed for each customer ensures that the process of finding desired items is simplified, enhancing the overall shopping experience. b. Affordable Price Points by building a low-cost supply chain, which is a two-pronged approach: Ship/Deliver Together: More units shipped or delivered together, thereby reducing the shipping costs No Rush/Regular Dispatch: This allows sellers to manage orders with less resources c. Better product quality, reducing returns structurally through proactive policies We enhance product quality by regularly delisting poor-quality items, educating sellers on the right quality range that grows their business, and monitoring metrics to suspend seller product ranges with consistently subpar quality and fulfillment. Your focus is on the value-conscious customer, aspirational customer from small-town India, Bharat. However, Bharat also exists in the metros, so would you be focusing on the larger cities or will your focus continue to be Tier II and Tier III cities? Shopsy remains customer-centric, aligning its offerings with market expectations and needs. We continue to cater to value-conscious consumers across all markets. We believe that there are many Bharats with diverse needs, and our ambition is to be able to provide the right value proposition for each of these Bharats. When it comes to innovation and customer-centricity, how do you ensure an elevated and seamless customer experience? As a customer-centric brand, Shopsy focuses on continuous innovation to offer a seamless shopping experience. Our platform features an endless aisle for effortless product discovery and a personalized feed that simplifies finding desired items given the very diverse and regional specific needs of our Bharat consumers. We stay on top of trends to ensure our customers receive the latest products and the best value. We cater to diverse preferences with tailored landing pages and an easy-to-browse multi-category product feed, enhancing the user experience across various touchpoints. To streamline the customer journey, we use AI in chatbots to resolve queries and refine recommendations, delivering a seamless, personalized shopping experience and helping users find the best deals effortlessly. Shopsy recently celebrated its third anniversary with 330 million app downloads across the country. What is your expected growth target for the next two years? Where do you see yourself on your 5th anniversary? The market for hypervalue platforms in India continues to witness robust growth, with increasing consumer adoption and expanding market reach. To leverage this opportunity, Shopsy would like to lead the market with our innovations, adapting to changing consumer preferences. As one of India’s rapidly growing hypervalue platforms, our vision is to help Bharat e-shoppers and sellers bridge the gap between their dreams and means by offering easy access to a diverse assortment, affordability with entry price points across categories, and dependable quality to millions of online shoppers.
What is the marketing mix of the campaign?