Poshmark’s Indian CEO is bringing the company to India after making a mark in markets like the United States, Canada and Australia. Luxury goods like Louis Vuitton designer handbags, Michael Kors wallets, and Nike’s cost millions of rupees. They are usually made from pure leather and studded with precious stones. Purchasing a brand-new item is expensive and not a sustainable approach. However, if we foster a culture of trading refurbished luxury goods and encourage sales of second-hand items, the environmental footprint will reduce while promoting entrepreneurship among sellers.
Poshmark is a Consumer Tech start-up headquartered in the United States. With Manish Chandra as the CEO, the company’s roots are in India, and they are now coming back home to set into motion their expansion plans for the Indian market. Poshmark is a social shopping marketplace that specialises in second-hand clothing, bags, etc. in categories like fashion, home décor, and beauty.
Returning to homebased
The company is returning to its home country or their domestic market as part of their expansion plan. Since the CEO has his roots deeply embedded in India, he is bringing his company to his home country owing to the strong focus on sustainability among Indian consumers. Poshmark believes that the value that they bring and the sustainable lifestyle they are fostering through their marketplace is a great product-market fit for the Indian market.
How Poshmark’s entry is a gamechanger for the Indian online fashion ecosystem
Poshmark’s entry will herald a new indirect competition against domestic marketplaces for pre-owned goods like Quikr, Ola, as well as e-commerce firms like Ajio, Myntra, and Snapdeal. This will bring about a change in their stance directing it towards value e-commerce.
Why are they expanding in India?
Poshmark is expanding in India to get a piece of the massive social commerce potential in the country valued at $2 B. The industry is set to touch $20 Billion within a span of 5 years and will be estimated at $70 B by 2030. Social commerce in India will be 2x larger than the present e-commerce market in India within the next 10 years.
Market opportunities for MSMEs
The social commerce start-up list is growing in India. The market opportunity for social commerce in India’s e-commerce industry is expected to reach $140 B by 2025. The opportunity is huge for start-ups especially in Tier 2 and 3 markets. Investors are also currently very confident of funding this sector.
Poshmark is a social shopping marketplace that specialises in second-hand clothing, bags, etc. in categories like fashion, home décor and beauty.
Decoding Poshmark’s Expansion Strategy
Poshmark has been consistently focused on expanding to new markets. They are headed to markets where the e-commerce opportunity is booming, and that place is definitely India. To support its global expansion, Poshmark has upgraded its leadership team as well which demonstrates to start-ups and small businesses that expansion to new markets needs to be backed by solid, dedicated leadership. Their expansion strategy has been clearly centred around tapping into a populous market. E-commerce start-ups need to target such populous and fast-growing markets with a consumer base in the millions.
Poshmark chose India as its first step towards global expansion since India has a massive internet user base comprising of 622 million active users. This is a goldmine for e-commerce and social commerce start-ups. The community of shoppers and sellers in India is very diverse which is a very lucrative opportunity for social commerce start-ups. Depending on your social commerce business model, pick a market that will gel well in terms of the cultural and business perspective.