Jabong bets big on fashion retail, focuses on profitability

Leading online fashion e-tailer, Jabong is all set to focus on improving product offerings, increasing margins and creating private labels for global markets to drive profitability and further increase its growth rate.
Jabong bets big on fashion retail, focuses on profitability
Leading online fashion e-tailer, Jabong is all set to focus on improving product offerings, increasing margins and creating private labels for global markets to drive profitability and further increase its growth rate.
 
Expressing his views on the matter,founder and managing director Praveen Sinha told media that Jabong, which has recently become part of Global Fashion Group (GFG) that brought together five fashion ecommerce startups from different parts of the world, is in a transition mode that will take 3-6 months more to show the real impact of the collaboration.Besides,we are focussing on improving our company's growth year after year, and GFG is a strong strategic move in this direction." 
 
The Gurgaon based firm reported almost 200% increase in its gross merchandise value (GMV), or total value of goods sold on its platform, at Rs 1,321 crore, for the year ended December 2014. Its losses increased five-fold at Rs 160 crore.
 
Last year, Berlin-based incubator Rocket Internet brought together Dafiti (Latin America), Jabong (India), Lamoda (Russia and CIS), Namshi (Middle East) and Zalora (South East Asia and Australia) to form Global Fashion Group (GFG), which will collectively cover 23 countries and 2.5 billion people, with an estimated fashion market value of 330 million.
 
This association will help increase Jabong's international presence and help it improve its assortment of products, with more foreign brands. At present, Jabong sells around 25 international brands including Miss Selfridges, Dorothy Perkins, River Island, G- Star Raw, NBA and Sisters Point. The fashion portal records average per day order of close to 50,000.
 
Sinha said access to international market will help the company increase margins and sales of its own brands.
 
GFG would create a supply chain to distribute all the private labels created by each of the five firms to other international markets. "This would also boost the back-end production as the demand rises with entrance in other international markets," he said.
Jabong's private labels include Phosphorous, Incult, Sangria and Lara Karen.
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