Business Wire IndiaShopX – one of India’s leading eB2B platforms – is taking a digital and ecosystem-led route to dramatically enhance scale and profitability, using what it calls the “ShopX Open Architecture”.
Historically, players in this industry have taken a “full stack” approach to eB2B, building their own “parallel supply chains” and often even holding inventory in large warehouses, and moving it using large fleets of parallel transportation infrastructure.
In contrast, ShopX is now taking a bold approach of letting brands and sellers use its technology and business platform to digitize their existing supply chains, utilizing their current distribution and wholesaling infrastructure. ShopX estimates that the 98% of the retail value still moves through existing value chains.
The ShopX Open Architecture will provide a comprehensive, flexible and open technology and business platform to brands and suppliers. Brands and suppliers can configure the platform to their choice and use either parts or all of it. Retailers, on the other hand, get much enhanced selection and optionality on their fingertips. ShopX is already talking to two global FMCG brands to power their nationwide distribution.
Explaining this model, Amit Sharma, CEO and Co-Founder, ShopX, said:
“During Covid, we got an opportunity to take a pause and think hard about our industry. We realized that the long-term change is happening in the direction of an evolution from a monolithic Commerce architecture to an Open and Interoperable Architecture, which will unlock tremendous scale and efficiency for ShopX, its partners and the entire ecosystem.
The future is Digital and Direct. Post pandemic, brands are looking for direct ways to connect with both retailers and consumers. In this, they want several features that are very different from the traditional “full stack” model being pursued by most players. These features include ownership of data, the ability to carry their brand ethos and identity, and direct communication with retailers and consumers.
To facilitate this change, we have realigned the organization and our priorities towards a model that allows others to use our tech and competencies rather than running the whole supply chain. We believe that this also monetizes the underlying assets much more profitably and scalably. All partners of ShopX, including its suppliers, financial services providers, logistics partners etc. will have a role to play and an enhanced scale to address. The addressable market for this space can be expanded at least 10 times using this approach.”
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