NDTV Worldwide and NDTV Convergence, subsidiaries of NDTV have picked up a stake of 37.55% and 33.2% respectively in it’s e-commerce arm, NDTV Ethnic Retail Ltd for consideration of INR 4.2 lakhs, reveals its quarterly result report.
NDTV had disclosed its plans to enter in ecommerce segment in February, and will be launching its website in couple of months. The company had also appointed Rahul Narvekar, Ex- Director, Brand Sourcing, FashionandYou to lead 25 member team based in Gurgaon.
Previously, NDTV had partnered with Infibeam’s Buildabazaar.com to launch it’s ecommerce website in 2010, where Infibeam was suppose to manage hosting, fulfillment and customer service but as it seems, now NDTV is going for an inhouse team for ecommerce headed by Rahul. It will be launching its new online property on a different link other than ndtvshopping.com, and will not be based around the branding of NDTV in it.
It will be offering two main categories i.e. ethnic fashion for men and women including jewelry, handicrafts such as paintings and sculpture and will be targeting the NRI market. As per Rahul, for targeting Indian market one needs to have deep pockets, and in Indian scenario companies are just trying to hurt each other to become the last man standing. “It’s not this that we won’t be looking at the domestic market but will be serving the global market.”
Looking at the scenario where companies working on the same model had failed to meet the expectations, which include Hutk whose operations were recently stopped by Times Internet and Exclusively.in which was acquired by Myntra last year. Rahul said that the model is not wrong, citing example of Hutk he said no-one even knew such an site existed, we came to know about it only after when it was shut, similarly Excusively.in was doing great, but somehow it changed it’s focus and launched Shersingh.com targetting domestic market which might be the reason for it’s acquisition, but even after acquisition it is working well. He also said we cannot forget companies like Cbazaar, Utsav Fashion who are doing well in the market.
NDTV ecommerce ambition are following the similar model as followed by other media conglomerates including Bennett Coleman & Co Ltd which runs Indiatimes Shopping and Network18 which runs HomeShop18 and BookMyShow and India Today group which owns Bagittoday.