Club Factory to expand operations, onboard 10,000 sellers


NEW DELHI: Five-year-old Chinese e-commerce marketplace Club Factory aims to onboard 10,000+ sellers in India this year. Club Factory started operations in India in 2016 and has an office in Gurgaon. The company plans to open offices in Bengaluru and Mumbai as well.

“Our seller base is growing rapidly and we are going to open seller registration to all from August onwards, where we will offer a marketing fee waiver,” said a spokesperson for Club Factory.

The company is competing in an already overcrowded market dominated by players like Amazon and Flipkart. “Global players like Amazon and Flipkart are great examples to learn and operate in the e-commerce space. Our strength is in selling unique, modern and trendy product at the best price. We will continue with our strategy of empowering local sellers to help us in meeting with increased demand,” the spokesperson added.

Club Factory offers products across a range of categories including apparel, shoes, jewellery, home décor, handbags and beauty products, healthcare supplements to gadgets. Club Factory’s investors include Bertelsmann, IDG Capital, Qiming Venture Partner and others.

The company has three warehouses in India and has also partnered with local logistics companies for fulfilment and last mile logistics. “As a key strategic focus we have exempted sellers from paying commission charges to sell on the platform. We have also made plans for investment in warehousing, delivery, technology and marketing,” the spokesperson added. However, the company did not specify the investment amount or the period for which the platform will be commission free for sellers.

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On its consignment being seized by customs in Mumbai following complaints by local retailers about dumping products (by Shein, Club Factory and other Chinese retailers) the official said, “We have measures in place to ensure that our sellers don’t violate local policies. We operate on a different model as compared to Shein and we are learning from Flipkart and Amazon on how to help the local economy grow.”





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