Club Factory orders swell by 700% during Diwali

Chinese ecommerce platform Club Factory, which counts India as its biggest market, garnered a 700% year-over-year growth in orders this Diwali season.

West Bengal, Bihar and Telangana saw the highest sales, with the top-performing categories being mobile phone accessories, fashion and lifestyle products, a statement from the company said on Thursday.

Club Factory envisions an “era of FAC (Flipkart, Amazon, Club Factory)” to be the future of India’s e-commerce market, Vincent Lou, founder and chief executive at Club Factory said in the statement.

“We believe the future of India e-commerce will witness an e-tailer focusing on branded items and bigger sellers, an online grocery shopping platform that provides daily necessities, and a diverse bazaar alike marketplace that enable all sort of products to thrive. While Amazon and Flipkart are competing in the first two categories, our strategy is to tap into the bazaar-like marketplace,” Lou added.

Flipkart and Amazon accounted for over 90% of $3 billion goods sold during the festive season that commenced on September 26 and ended on October 4, according to marketing research firm Redseer. Any research figures on sales made during the Diwali sales are yet to be released.

In September, the cross border platform said that 70% of its orders are carried out by Indian small and medium enterprises (SMEs). The company has three warehouses and it recently opened a new warehouse in Mumbai. 

The increase in numbers is in stark contrast to the company’s sales in the first half of 2019, when the Hangzhou, Zhejiang-headquartered company saw a rapid decline in its order volumes.

Club Factory hit a roadblock in April after an Indian government crackdown on Chinese e-commerce platforms. The companies were reportedly evading customs duty by claiming commercial consignments to the country as gifts. 

A subsequent clampdown by the customs authority in Mumbai on such shipments had led to a 60% decline in volumes for Club Factory, an industry watcher had estimated.