ShopClues was one of the biggest e-commerce giant, who was competing with the other giants like Flipkart, Amazon and Snapdeal.
ShopClues is one of the biggest startup bubble burst in the year 2019. There are some of the reasons which lead to this situation of ShopClues. They are:-
1) Leadership problem and conflicts
ShopClues was owned by 3 people i.e.
Sanjay Sethi, Sandeep Aggarwal and Radhika Aggarwal. The company was having a mind blowing startup idea but, it is a well known fact that, the company having conflict b/w the founder cannot survive for a longer time.
Sandeep Aggarwal was arrested for the insider trading. After this he filed a case against the other two founders. This all things lead to the failure of the company.
2) Maximum Product Return
Due to poor quality and no product quality assurance, most of the products ( i.e. more than 50% ) were returned by the customers. Due to this reason, the funds of the company was having a big loss. This lead to a big cash crunch, as the investors were not ready to invest more.
3) Disruption due to technology
ShopClues was not ready to change its technology. The company was not able to see the other giants who, were changing their technology dynamically. Due to this, the company was not able to save theri customers from the other companies. All the other companies started targeting the customer base of ShopClues.
The same case was with Nokia, Blackberry etc.
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