• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Friday, July 18, 2025
  • Login
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home News

Jabong To Trim Its Loss By Shedding Brands With Low-Margins To Focus On Premium Lifestyle Products

by Bhagya P
May 23, 2016
in News
Reading Time: 2 mins read
0
The Big Funding Stories in Indian E-commerce !
TwitterWhatsappLinkedin

jabong

May 23, 2016: Jabong, an online fashion portal in a bid to cut losses and position itself as a platform for premium lifestyle products, is shedding several low-margin brands, including three-fourth of its private labels.

The company, unit of German ecommerce incubator Rocket Internet, will instead focus on top 200-300 brands, said a top executive of the company.

Sanjeev Mohanty, who joined Jabong as Managing Director from Italian fashion brand Benetton six months ago said,”We had spread ourselves too thin and now we are shrinking our portfolio.” He further adds “We are sharpening our positioning and opting out of lower price point brands and labels.”

The names of the brands which are being delisted was refused to diclose by the Gurgaon-based company.

After a clampdown on discounts Jabong managed to reduce its losses to about a third in 2015 to Rs 46.7 crore, but the move slowed sales growth to 7% at Rs 869 crore.

Over the years, the company launched several global brands such as Dorothy Perkins, G Star Raw , Tom Tailor , Topman and Bugatti Shoes exclusively for India, helping it earn higher margins. The company is now also discontinuing a dozen of its own labels to focus on bestsellers, including Sangria and Incult.

Mohanty said, the lifestyle portal, which competes with players such as Myntra, Voonik and Koovs, will also expand its ethnic and sports portfolio.

India’s biggest domestic ecommerce companies Flipkart and Snapdeal are flush with cash as overseas investors in both companies seek a piece of the market that’s set to surge.

While the country’s overall online fashion market is expected to reach $20 billion by 2020, Jabong’s latest move is seen narrowing the market for itself.

“We are looking at 40% of the market, which is Rs 750 and above, with focus on the upper mid-priced market to premium and super premium,” Mohanty said.

Repositioning of the brand could mean initial loss of customers who aren’t strictly brand conscious, says experts. However, many also feel consolidation of brands could create a unique identity, something that several online players, which sell single-category products have started doing.

Sreedhar Prasad, partner-e-commerce at KPMG said, “It is good to consolidate the brand portfolio using analytics and understanding of customer preferences. This could even help in a clear value proposition to the customers. Brands need to provide either revenues or margins or variety to the platform.”

Jabong and Flipkart-owned Myntra were considered leaders in the fashion category, but Amazon India has been gradually getting aggressive. Most lifestyle product makers are either shying away from heavy discounts or giving price-offs for old merchandise, something that goes against Jabong’s business model of offering fast fashion or the latest collection.

Also Read: Global Fashion Group Parent Of Jabong Rakes $339M Funding; Valuation Drops Drastically

You might also like

Zuckerberg, Meta Directors Settle $8 Billion Privacy Trial

Samsung Chairman Jay Y. Lee Cleared in 2015 Merger Case

Microsoft Salaries Revealed, AI Teams Earning More Than Ever Amid Strategic Shift

jabong

May 23, 2016: Jabong, an online fashion portal in a bid to cut losses and position itself as a platform for premium lifestyle products, is shedding several low-margin brands, including three-fourth of its private labels.

The company, unit of German ecommerce incubator Rocket Internet, will instead focus on top 200-300 brands, said a top executive of the company.

Sanjeev Mohanty, who joined Jabong as Managing Director from Italian fashion brand Benetton six months ago said,”We had spread ourselves too thin and now we are shrinking our portfolio.” He further adds “We are sharpening our positioning and opting out of lower price point brands and labels.”

The names of the brands which are being delisted was refused to diclose by the Gurgaon-based company.

After a clampdown on discounts Jabong managed to reduce its losses to about a third in 2015 to Rs 46.7 crore, but the move slowed sales growth to 7% at Rs 869 crore.

Over the years, the company launched several global brands such as Dorothy Perkins, G Star Raw , Tom Tailor , Topman and Bugatti Shoes exclusively for India, helping it earn higher margins. The company is now also discontinuing a dozen of its own labels to focus on bestsellers, including Sangria and Incult.

Mohanty said, the lifestyle portal, which competes with players such as Myntra, Voonik and Koovs, will also expand its ethnic and sports portfolio.

India’s biggest domestic ecommerce companies Flipkart and Snapdeal are flush with cash as overseas investors in both companies seek a piece of the market that’s set to surge.

While the country’s overall online fashion market is expected to reach $20 billion by 2020, Jabong’s latest move is seen narrowing the market for itself.

“We are looking at 40% of the market, which is Rs 750 and above, with focus on the upper mid-priced market to premium and super premium,” Mohanty said.

Repositioning of the brand could mean initial loss of customers who aren’t strictly brand conscious, says experts. However, many also feel consolidation of brands could create a unique identity, something that several online players, which sell single-category products have started doing.

Sreedhar Prasad, partner-e-commerce at KPMG said, “It is good to consolidate the brand portfolio using analytics and understanding of customer preferences. This could even help in a clear value proposition to the customers. Brands need to provide either revenues or margins or variety to the platform.”

Jabong and Flipkart-owned Myntra were considered leaders in the fashion category, but Amazon India has been gradually getting aggressive. Most lifestyle product makers are either shying away from heavy discounts or giving price-offs for old merchandise, something that goes against Jabong’s business model of offering fast fashion or the latest collection.

Also Read: Global Fashion Group Parent Of Jabong Rakes $339M Funding; Valuation Drops Drastically
Tags: amazonbrandse-commerceflipkartIndiajabongSnapdeal
Tweet54SendShare15
Previous Post

India Will Get Indigenously-Built Supercomputer By Next Year

Next Post

China’s Tiens Group To Enter Indian Online Marketplace

Bhagya P

Recommended For You

Zuckerberg, Meta Directors Settle $8 Billion Privacy Trial

by Anochie Esther
July 18, 2025
0
Zuckerberg

In a sudden twist that ended what could have been a landmark courtroom showdown, Meta Platforms CEO Mark Zuckerberg and several current and former directors reached a settlement...

Read more

Samsung Chairman Jay Y. Lee Cleared in 2015 Merger Case

by Anochie Esther
July 18, 2025
0
Lee

In a pivotal ruling that removes a significant legal overhang, South Korea’s Supreme Court on July 17 cleared Samsung Electronics Chairman Jay Y. Lee of all charges related...

Read more

Microsoft Salaries Revealed, AI Teams Earning More Than Ever Amid Strategic Shift

by Anochie Esther
July 18, 2025
0
Microsoft

Amid significant layoffs and an aggressive pivot to artificial intelligence, Microsoft finds itself under the spotlight once again this time not for job cuts or corporate strategy, but...

Read more
Next Post
TATA To Enter E-commerce Sector Through The Launch Of Its Online Portal CLiQ

China’s Tiens Group To Enter Indian Online Marketplace

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple Artificial Intelligence bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?