Valyoo Technologies, the company behind, niche eCommerce verticals websites LensKart, WatchKart, BagsKart and JewelsKart is seriously considering to nurture only one platform and sell of the rest.
Apparently Valyoo wants to position itself as the top eye–wear player in India and if the company wants to even think of striving for the position, it will have to focus solely on LensKart. Interestingly, the company already believes that in the relatively niche market of premium handbags, its BagsKart is already in the lead position, but it would rather prefer to have the pole position in eye–wear, said co-founder Peyush Bansal.
Valyoo’s approach to eCommerce is very interesting as the company never opted for a holistic approach to sell multiple verticals under one online shopping portal. Majority of Online Shopping destinations usually employ the technique of listing a vast number of SKUs to ensure that a customer has ample choice of purchase and this method is also known to entice customer to purchase something from the site rather than leaving empty–handed.
Perhaps this is the reason that Valyoo wants to sell–off the other three properties. WatchKart, BagsKart and JewelsKart faces severe competition from popular e-commerce sites like Flipkart, Amazon India, Myntra, Snapdeal and many other portals who not only offer very similar products, but are able to offer ‘related’ products too. Combining purchases ensures higher revenue for the company, while at the same time allows the portal to extend higher discounts for bulk or combined purchases.
Coming back to LensKart, offering Prescription Spectacles online has still not caught on. Though LensKart sells a vast variety of Sunglasses, Shades and other forms of casual, sport or comfort eye–wear, the company is betting big on prescription or ‘numbered’ glasses. This has helped the portal gain a first–mover advantage.
Valyoo’s decision to sell–off the other properties could prove beneficial for the company as well as the platform, which will soon deploy over a 100 regional stores. Is Valyoo’s decision correct?