Active Stocks
Tue Oct 03 2023 15:59:59
  1. Tata Steel share price
  2. 128 -0.78%
  1. Power Grid Corporation Of India share price
  2. 199.3 -0.28%
  1. Tata Motors share price
  2. 620.3 -1.59%
  1. NTPC share price
  2. 241.15 -1.83%
  1. State Bank Of India share price
  2. 602.95 0.71%
Business News/ Industry / Retail/  Jabong may post $800 million GMV by December

Jabong may post $800 million GMV by December

Jabong claims January 2016 has been its best month since inception in 2011

A screen grab of Jabong website.Premium
A screen grab of Jabong website.

New Delhi: Online fashion retailer Jabong, which is aiming to break even in the next three years, is expected to clock a gross merchandise value (GMV, or cost of goods sold) of over $800 million by December, the company’s newly appointed chief executive and managing director Sanjeev Mohanty said.

The firm claims to have touched $66 million in GMV in January, with a 56% growth in gross orders and 59% in gross items. Jabong will be “within striking range" of the $1 billion GMV mark by year-end, Mohanty said on Wednesday.

The firm claims January 2016 has been its best month since inception in 2011. To be sure, January is among the best months for the entire apparel industry, thanks to end-of-season sales.

Mohanty is revisiting strategy and is putting in place mechanisms to cut costs and regain ground lost to rivals such as Myntra and marketplaces such as Amazon and Flipkart.

Jabong will increase its focus on the marketplace model from the inventory-led model, said Mohanty. Also, it will discontinue private labels and focus on increasing assortment across existing brands. Jabong currently gets over 10% of its business from private labels. The firm has private labels under Sangria, Lara Karen, Miss Bennett, Incult and Phosphorous brands. It plans to continue selling its Indian ethnic wear brand Sangria, which contributes about 70% of all private label sales. However, it will slowly pull the plug on the rest of its private labels.

“We plan to de-clutter the website and app, there will be fewer brands and we will focus more on curation and assortment across the brands. India has so many brands that we haven’t tapped into," said Mohanty. “Private label will be a strategy three years from now... We don’t have the bandwidth right now for private labels."

Jabong plans to introduce international brands from its owner Global Fashion Group’s (GFG) portfolio within the next six months. Jabong also looks to increase its focus on its mobile app and website. According to Mohanty, the company in January saw 75% of its orders come from mobile and it expects to take it to 80% plus with in the next six to 12 months.

Jabong recently went through a senior management overhaul where the founding team of Praveen Sinha and Arun Chandra Mohan left the organization.

GFG is looking to pump in fresh capital into Jabong as it bets on the new team to turnaround the India business.

Jabong is one of the five fashion e-commerce companies operating within GFG, the fashion group for emerging markets that operates in 28 countries.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 04 Feb 2016, 03:18 AM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App