The Unique Fall of a unicorn : Why did shopclues implode?

Shopclues is an e-company for buying and selling products like clothing, beauty products, accessories, health products, etc. The company was settled in 2011 by Sanjay Sethi, and the co-founder (Sandeep Aggarwal and Radhika Aggarwal). The company was established to provide online service to the buyers and for being settled in online marketing. But after some time the co-founders have left the company because of their personal issues they had left the company means left the participation in the company but was the sharer of the company. And the company has fallen down because of not being given proper guidelines and lost in the competitive market.  





Lost in a battleground:

In the competitive market of India today Flipkart and Amazon have reached that level where shopclues has just lost its identity. And the little reason for this also is funding. To survive in this competitive market shopclues has not got that much enough funding to grow Where adding of new customers is expensive and for this continuous funding is necessary. Literally, No one is supportive of this. Financially In the year 2018 Flipkart and Myntra have 36.6% market share While Amazon has 31.2 %. And shopclues has only a 1.6% market share of e-tailing India. This share has also now fallen to less than 0.5%. According to research the e-tailing pie of India has hoped to cross 30 billion dollars. Yet shopclues is not able to increase his share. There are some reasons let’s discuss here.

Reasons why Shopclues couldn’t maintain or grow its share?

There are many reasons why shopclues couldn’t maintain or grow its share. Here are some of them;

  • In the competitive market, shopclues have lost their identity because The motive of shopclues is only to make a profit. When it started in 2011 it was ahead in the marketplace model. Flipkart and Snapdeal were yet to become a marketplace; Amazon has not launched yet. But after the years every e-companies got a marketplace and shopclues has fallen down. shopclues has not taken care of what customers wanted ..they evolved on their own. In the previous five years, every company has maintained their growth but shopclues did not. The buyers also increased during that time they mostly want to do online shopping with an experience. and shopclues is not able to impress customers. While other e-companies have reached out to buyers with a better service.   
  • The second reason could be the decrement of value proposition like shopclues is not able to explain to the customers that why should they buy that product, what is the benefits or side-effects of the products and lost his value proposition. other e-companies like Amazon who mainly focused on electronic items, books, and standard items while shopclues has focused on clothing, beauty, accessories, health, etc ….After a few years shopclues has also started selling electronic products like mobile phones but not able to convince customers. little losses were managed in 2018 but yet sales remained small as compared to other e-companies.
  • The third could be shopclues is not able to manage more funds and In this battle of being in the market funding is a very necessary component and shopclues is unable to manage enough funds. Adding new buyers is expensive and needs continuous funding. But like Amazon and Myntra many little players are also there in the market and small players have to face difficulties to manage funds. According to the data, Flipkart has managed almost 8 billion dollar funds, Snapdeal was able to manage 1.8 billion dollar.
  • The fourth reason could be the funder of the company. For the continuous growth of the company, there should be continuous participation of funder in this competitive market. The founder of shopclues is Sandeep Aggarwal has left the company in 2014 he was the sharer of the company but left his participation in the company which leads to the fallen down of the company.

:-       I Nidhi Kumari also have experience of shopping from shopclues which left me for giving a very bad review. Actually, I have ordered jeans of a specific brand but shopclues has delivered me the product of some other brand and the delivery process was also very disturbed. For this rude behavior of shopclues I haven’t shopped anything from shopclues till now.


If you are going to run a company you should have taken proper care of the needs that customers wanted. you must have that capability to convince buyers to buy that product. These days everything is digitalized so e-companies have a very good chance of being settled in online marketing and convincing customers by guiding them to the right products according to their needs and making their identity in the market. And shoclues is unable to provide all these and fallen down and lost his identity as a bad e-company in the market.


Blog By 

Rohit Jha

Nidhi kumari.