In a bid to reclaim lost ground, lingerie retailer Zivame is betting on an omnichannel strategy to helm its turnaround.
With 26 brand stores established over the last 12 to 18 months, Zivame is set to take that count to 100 stores by FY19 end and has set aside an investment of Rs 30 to 40 crore for the same.
Shaleen Sinha, who took over the mantle of CEO at Zivame after founder said, "Our focus has been on ramping up our retail or omnichannel as an initiative. We dynamically re-locate stores using artificial intelligence, to provide for availability, hence customer conversions at the stores are far higher than online."
Zivame claims the conversion rates at stores are two times higher than online sales with the average order value being at least 1.2 times higher. While Sinha did not disclose the ticket sizes, the company claims to clock close to 1 lakh orders per month.
Zivame's renewed efforts to scale growth through an omnichannel strategy come even as the company has been working to overturn the dip in revenues it saw last year.
In FY17, Zivame recorded net sales of Rs 52.9 crore, down about 15% from Rs 62.6 crore in FY16 while operating losses widened to Rs 56.5 crore from Rs 53.3 crore in FY16, as per documents filed with the registrar of companies and accessed from Tofler.
However, Sinha maintains the company has grown 75% in revenues as of December 2018 even as losses have been steadily shrinking.
He said, "We are looking to rapidly expand both our channels (online and offline). We will try and get to EBITDA breakeven within 12-18 months. That is the current target.”