In a recent news of employee layoff covering Indian startup ecosystem.Vistaprint India has joined the league and “It may shut down its operation” said an unnamed executive from e-commerce portal. Staffs from marketing and sales from Delhi and Mumbai locations have been fired, and only a skeleton staff is running the show. Joining the league of Snapdeal, stayzilla and few others with lay off. The reason cited is because of its inadequate management of funds and resources. The online customization and Printing industry is said to have a total market share of US$10.2 billion. With Vistaprint exit. Printvenue, it’s next rival, will have the opportunity to acquire 90% of the online printing market share.
Here are 3 strong indications which gives us a hint that Indian operations of Vista print may end, very soon Cash Running Out Vistaprint shocked everyone with their brazen marketing spend, both online and offline. With an average spend of Rs 20 crore last year and this year for marketing related activities, Vistaprint actually overtook Printvenue and it’s other rivals.
Cash Running Out:
Vistaprint shocked everyone with their brazen marketing spend, both online and offline. With an average spend of Rs 20 crore last year and this year for marketing related activities, Vistaprint actually overtook Printvenue and it’s other rival in marketing expenditure.
Senior Leaders Quit:
When such a trouble brews up, senior management leaders are the first to quit. And precisely that is happening. This is one strong signal that Vistaprint Indian operations are indeed under fire. Demonetization Effect Another set of reports indicate that demonetization had a very negative impact on the overall sales of Vistaprint model, and the shock was too massive to ignore. A senior executive working with a leading e-commerce portal, which partnered with Vistaprint for their Indian market expansion has confirmed this fact.
Diluting Focus, Spreading Too Thin:
Within India, Vistaprint has been spreading themselves too thin, by diluting their focus everywhere. Branding focus was missing, and Rs 20 crore marketing blitz couldn’t help their cause. Amidst myriad brands and product giants, Vistaprint simply couldn’t carve out its niche.
Vistaprint India’s CEO has denied that they are shutting down Indian operations, and he also denied the count of employees which are being fired. He said, “All businesses need to be profitable to be sustainable. That has been the primary objective in taking certain measures, though the numbers (of layoffs) indicated are incorrect,” But, we can read between the lines here.