Mobile Internet

Club factory: A Challenger to the Existing E-commerce Giants

Club Factory

Indian internet consumers are one of the largest in the world with numbers soaring as high as a 400 million. Almost half of this population tends to shop online and it has been found out that the highest sold category online is fashion. Anything from a simple Jeans & T-shirt to a fancy suit or gown can have a huge market in the world’s second most populated country. The economy of the country has been growing at a steady pace. It has a positive impact upon the fashion industry as well because the rising disposable income has led Indians to spend more on daily wear and general fashion of the nation.

Chinese companies have been flooding the Indian market for quite some time now. They have been very successful in the recent times due to numerous reasons such as cheap prices, trendy products/services/contents and extensive reach to a varied consumer base.

Indian e-commerce space is one the most alluring in the world with a huge number of internet users and online shoppers. Flipkart and Amazon are the two largest players in India with smaller players popping up every other day. The US retail giant Walmart entered the Indian market by acquiring controlling stakes of 77% in Flipkart. Chinese giant Alibaba has not yet entered the market as they are waiting for the right time but they have been heavily investing in the Indian tech startups to understand the local market. Their global delivery platform Aliexpress works in India but they are not present in a full-fledged manner.

Club Factory is a Chinese e-commerce platform operating in India for around 2 years. They focus on selling unbranded, trendy and affordable products through their platform. Their aim is to reach as many consumers as possible and penetrate even the remotest of areas in India. They are currently serving around 26000 pin codes in India. Club Factory has 40 million registered users in 18 months whereas in comparison, Flipkart has 100 million registered users but in its 10 years history. The rate at which Club Factory is rising is phenomenal and it is worrying even for Flipkart and Amazon.

They have also collaborated with 5 last mile logistic firms such as Delhivery and Gati to reach the 26000 pin codes. Another reason for this company to become extremely popular is its quick delivery. They generally deliver their products within 2 weeks (10-12 days) with the help of an efficient Supply-Chain Management System. This helps them take a lead on its peers such as Ali Express, which takes at least 15 days for a delivery.

Club Factory currently has over 50 million downloads from playstore and over 529000 reviews with an average rating of 4.2 stars. The stats show the good performance of the company. However, several of the reviews on playstore show a different picture. Though it started out as a cheap and fast fashion product platform, it has degraded in quality over time. Most of the recent reviews from its users state that they have been either cheated or given a very poor quality product from the brand. This is eating into its market reputation big time.

-Soumya De

Comments (2)

  1. Great, I really like it! Youre awesome

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