Jabong says October revenue up 50% over September
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Online fashion portal Jabong said on Thursday its October net revenue grew 50% month-on-month due to a reduction in supply chain costs, consolidation of designs, introduction of private label brands and its Diwali festival campaign.
“I am delighted that revenue growth is back on track, margins are getting better and the customer experience has significantly improved. Synergies with Myntra as well as cross learnings between the companies have helped accelerate customer acquisition and better customer experience,” Jabong chief executive Ananth Narayanan said in a statement.
Jabong was bought by Flipkart-owned Myntra in July.
With a 23% month-on-month increase in the number of orders to 750,000 in October, the average ticket price has risen 10% in the last three to four months to Rs1,948. Jabong was able to achieve positive unit economics, that is, it was able to cover the per unit cost of an order.
However, Narayanan declined to share the revenue figures. The firm aims to turn fully profitable by January 2018, he said in an interview on Thursday.
With the acquisition by Myntra, synergies in terms of shared logistics resulted in a 3-4% fall in supply chain costs, he said. Products that had similar or shared designs with Myntra were removed from Jabong. The firm saw its net promoter score (NPS) increase to 50 last month. Calculated on a scale of 100, NPS measures customer loyalty and the overall quality of service. Jabong saw 30% of users who were earlier inactive for over 90 days return to the platform, said Narayanan. Shoppers at Jabong were mostly in the age group of 20-26 years, 60% of whom were women.
The Diwali campaign that ran in October saw mobile application downloads of Jabong increase by 40%. Narayanan declined to share the expenditure on the campaign.
The firm claims to have 350,000 products listed across categories such as footwear, apparel and jewellery, from more than 1,500 brands. Apart from its private label, it has over 1,000 sellers as part of the marketplace model.