Online shopping is undeniably time saving, convenient and cost effective. However, it has its own limitations – the primary being, the inability to render a holistic shopping experience to the customers, which only comes with the “touch and feel” factor. It is this gap which sometimes generates inhibitions and apprehensions in the mind of a potential buyer. Such irresolutions are quintessentially reflected on consumer behaviour, especially with regard to wearables, owing to the uncertainty of size, fit or texture.
Here’s a startup which attempts to fill this experiential void in digital consumers by narrowing the space between offline and online.
Based out of Noida with a holding company in Singapore, Shopsity was incorporated in April 2015 by Danish Ahmed, Parijat Rathore and Gaurav Arya. It is a hyperlocal product discovery app that allows users to see what’s selling nearby, with details including photos, sizes, price and oﬀers.
Vision of the Company
The company aspires “to be the number one destination for customers shopping offline, by becoming a platform that empowers retailers to reach, engage and transact with customers nearby”.
What does Shopsity do?
Shopsity bridges the information gap between the customers and the retailers as it enables the former to search and identify the products of their choice, available in stores in their vicinity, thereby helping them economize on their time and energy. In other words, customers can quickly see the new arrivals and latest offers at their favorite stores, check what is trending in their city and if they like something, they can visit the store, check the item, and immediately buy it.
Likewise, retailers can also harvest accruing benefits from this app. They can expect a boost in footfalls from a platform like this as it renders an opportunity to the retailers to display their collection online.
Shopsity has tied up with over 100 stores across Delhi-NCR. The startup, which is a 40 member team, claims to be generating operational profits and plans to reach 500 stores by the end of July.
As per the data furnished on Google Play, the app has 10,000 – 50,000 installs.
Monetization model in detail
The company doesn’t charge retailers a commission for each transaction. Instead, it works on a yearly subscription fee and charges retailers for various tools that increase their reach and productivity.
Fashalot is one player which gives a direct competition to Shopsity. Further, the company also considers Fynd, Zopper and Little as its competitors. It maintains that while Little is focused on deals from service players, Shopsity is focused on products selling at local store. Similarly, unlike Zopper and Fynd which offer home delivery only, Shopsity emphasizes on ‘touch & feel’ factor, so that customers can have a traditional buying experience, and at the same time increase stores’ footfall.
The company is currently backed by Sandeep Aggarwal, founder of eCommerce ventures like ShopClues and Droom, and Teruhide Sato, founder of Netprice.
Shopsity is looking to raise series A round of funding soon.
Future Plans, Scope and Market Size
Shopsity envisions bringing 1 million retailers on the platform and building a robust eco-system through which retailers will be able to reach, engage and transact with a greater number of local customers.
As per the team, the company is on a rapid expansion spree and plans to target 5,000 stores by the end of the year. Shopsity wants to have its footprint on every metro of the country by May 2016, and gradually branch out across tier II and III cities.