Jabong. com will continue with both online website and app.Besides, the brand will not go for the app-only mode even as rival Myntra abandons its website to sell everything only through apps.
Online fashion major,Jabong. com will continue with both online website and app.Besides, the brand will not go for the app-only mode even as rival Myntra abandons its website to sell everything only through apps starting this Friday in a bid to cash in on India's smartphone wave.
Expressing views on the new trend, Jabong Cofounder Praveen Sinha told media:
"We strongly believe customers should have the choice to buy either on his smartphone or on the computer. Adding that the Gurgaon-based company generates half its sales from mobile devices and will continue to host its website. "It's still 50-50 for us."
Sinha said an app-only operation may limit price comparison and product visibility for consumers, who could find it easier to quickly open other sites on a laptop or desktop. "Getting a price discovery from an app will be very difficult.
Price comparison is significantly reduced there. Product visibility is a feature on the application which will get improved in future. Because of the small screen, some consumers might find it a visibility issue," he said. From the customer's point of view, it makes sense to have both available since many features have not evolved fully on the app it is still a journey, Sinha said.
"If one technology is way ahead of the other, then one can be prioritised over the other otherwise not. In terms of interface, there is still lot of development that has to happen on apps and today it is not the time and sometime in the future, it will evolve to that level," Sinha added.
Sinha said Jabong will no longer raise funds independently. It received $100 million from British development finance institution CDC and other investors last year. Jabong is now part of the Global Fashion Group, which will provide the finances.
"Funds will be raised at a global level and allocated to the various country-specific businesses as the need arises," he said. "GFG will now become the central group where, if required, further funding will be raised."
Last year, Rocket Internet and AB Kinnevik created a global alliance of five large ecommerce companies in which both have sizeable investment -- Jabong, Dafiti in Latin America, Lamoda in Russia & CIS, Namshi in the Middle East and Zalora in Southeast Asia and Australia. Sinha said as part of the global alliance, Jabong will be able to secure exclusive rights to sell foreign brands in India, to list brands in other countries and meet its technological requirements.
"Also, creating our own labels will be easier as we will create a lot of synergies and back-end efficiencies through GFG and it will be good for our talent pool who can work in other group companies for exposure," he said. Sinha was dismissive of the buzz that US-based Amazon-.com was in talks to acquire Jabong in a bid to gain a strong foothold in fashion, one of the fastest-growing segments of online retailing.
Analysts saw a genuine fit for both entities, especially after Flipkart snapped up online fashion retailer Myntra last year for about $300 million.
"Talks with Amazon were never serious," he said. Germanybased Rocket Internet's ambition is to become the largest online platform outside China and the US and Jabong is an important cog in its global scheme of things.
As per a news piece in ET retail.
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