In addition, ShopX also achieved various other milestones in the same period:
- A 2X increase in the retailer signup rate
- Signed up with 34 FMCG brands in the last two months, including all the top 7 FMCG brands and all the leading mobile brands
- An average order size increase of 40% per retailer from April to July 2020
- Gross channel margins (the margin that ShopX gets from suppliers/brands) improvement of 50% in the same period
- 130% growth in revenue quarter on quarter, and 400% growth in revenue in this quarter compared to same quarter last year.
ShopX’s B2B business was profitable starting June, after factoring in fully loaded marketing costs and utilization basis SCM costs.
With the general economic slowdown compounded by the COVID crisis, the need of the hour was to transform small retail stores across the country with an efficient, affordable and sustainable digital solution for their sustenance and profitability.
Reflecting on the last few months, Co-founder and CEO Amit Sharma said that: “Small retail businesses faced several problems, and the first step was to remain deeply connected with our customers: the small retailer.”
ShopX invented a unique way of communicating with and engaging retailers by teaching them how to do video conference calls using popular software. Every week, ShopX conducted multiple focus group type calls with 20-50 retailers in each. During these Digital Engagement Session with over 1500 key retail partners across states, specific demand patterns across stores were identified, leading to a targeted merchandising strategy on the digital ShopX platform. Freeing them from the obstacles that the lockdown brought resulted in the increased use of the ShopX app.
Another key innovation during COVID times by ShopX was a unique model called “Truck Now”. Using its power of data and insights, ShopX would load “high propensity to sell” home care and essential items in its delivery trucks and go to specific pin-codes in different cities. In the face of rapidly fluctuating and unpredictable demand, the Truck Now model allowed retailers to pick and choose relevant products in an instant gratification model. The Truck would carry handpicked items that the market needs, and retailers would get on the spot delivery of the same.
Through such innovations, ShopX was able to increase its average order size by 40% per retailer from April to July 2020. Marketing spends have steadily come down as the habit of using the ShopX platform became mature and widespread.
On the brand partnerships front, ShopX has actively engaged the leading FMCG and Mobile brands in the country, and signed up with 34 top-tier brands in the last two months. These partnerships give brands direct access to ShopX retailers, and also empowers them with rich data insights about their product innovation and growth strategies. Some of these brands include Coca-Cola, Godfrey Phillips, Herbal Strategi, Go Desi, to name a few.
“As India's digital transformation unfolds, ShopX holds the key to create significant economic value through technologically-infused small retail businesses”, adds Amit. “Our approach has been to focus on the fundamentals: real revenue over other meaningless metrics, profit over unsustainable growth, and customer interest over short-term opportunism. With this approach, we are looking at becoming the largest retail network company in India in the years to come.”