Companies & Sectors
Snapdeal spends Rs200 crore just on rebranding!
With e-commerce already on shaky ground, the report that Snapdeal, a major player in the business, plans to burn a massive Rs200 crore on rebranding and marketing has caused a flutter. The e-commerce company launched its re-branding exercise with an expensive splash in the largest print daily. The irony of this seems lost on those making the funding Snapdeal's ambitious agenda to woo around 10 crore potential online buyers with a new logo. The company, which was set up in 2010, has changed its logo twice in its short six-year existence. 
 
Kunal Bahl, chief executive and co-founder of Snapdeal is quoted by media as saying, "There are about 5 to 6 crore online buyers in India currently and for e-commerce to become larger, the next 30-40 crore people coming online would be very important... Things like discounts, fast shipping, functional benefits are already there, but going ahead, e-commerce brands will have to stand for something of a higher order". It is not clear how re-branding is going to help any of it. 
 
Mahesh Murthy's acerbic tweet calling it a "Rs 200 crore for a new paint job on the Titanic" probably captures the sentiment best. Murthy, founder of Pinstorm and venture capitalist triggered a storm of comments suggesting that this was Snapdeal's last hurrah. Some even compared it to housing.com funded by the same venture capitalist, which has all but sunk.
 
 
 
 
The re-positioning by Snapdeal comes ahead of the festive season. Other big players and Snapdeal's competitors like Amazon and Flipkart are also lining up offers to woo customers to shop on their platform. 
 
Snapdeal has done away with its blue and red logo, replacing it with a Vermello (red)-coloured box.
 
The rebranding campaign of Snapdeal is conceived by Prasoon Joshi and his team at McCann while Shankar, Ehsaan and Loy have worked on the jingle.
 
A tweet about a quartz India articles says, Snapdeal needs more than just cosmetic surgery. 
 
   
 
Basically, it asks how a change in logo is going to attract new customers to the e-retailers' growth, which appears to be flagging across the industry.
 
Earlier in February, Snapdeal, in fresh funding, raised $200 million from investors led by Canada-based Ontario Teachers' Pension Fund, venture capital fund Iron Pillar and others. Last year, it had raised $500 million from Chinese e-commerce Alibaba group, Foxconn Technology group and Softbank group, its existing investor.
 
Snapdeal is promoted by Delhi-based Jasper Infotech Pvt Ltd, and have over 2.75 lakh sellers who sell more than three crore products on the online platform.
 
 
According to a report from Live Mint, Jasper Infotech reported losses widening to Rs1,328.01 crore for the year ended 31 March 2016 from Rs264.6 crore previous year as it spent heavily to maintain its market share amid growing competition from Amazon and Flipkart.

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COMMENTS

Anil Kumar

5 months ago

Agree. Snap Deal needs more than rebranding. 'Tried ' twice to buy something from Snap Deal - as it wasn't available on any other portal. Both times failure. First time - the vendor & snap deal had some dispute - so order got auto-cancelled. Second time - the product - Rs. 200 - was tagged with a add-on product of Rs. 2000 !!

Government extends date for filing IT returns to October 17
The government has extended the date for filing of income tax returns by tax payers whose accounts are required to be audited under the Income Tax Act from September 30 to October 17, 2016, an official statement said here on Monday.
 
"Taking into consideration that the last date for making declarations under the Income Declaration Scheme 2016 is also September 30, 2016, the Central Board of Direct Taxes (CBDT) has decided to extend the last date for such returns which were due on September, 30, 2016 to October 17, 2016 in order to remove inconvenience and to facilitate ease of compliance," a statement from the Finance Ministry said.
 
The tax payers whose business receipts exceed Rs 1 crore or professional receipts exceed Rs 25 lakh during the previous year 2015-16 are required to file an income tax return accompanied by an audit report by October 17, 2016.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

SRINIVAS SHENOY

5 months ago

What do you think?... Write your comments. Refunds and assessment of salaried individuals, which earlier took years are now settled within a month.

Fortnightly Market View: Be Cautious
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