Jabong looking to increase sales by 40 percent next fiscal

Online fashion portal Jabong aims to grow sales by at least 40 per cent in the next fiscal year, driven mainly by advertising, sales from newer brands and the introduction of private label brands owned by sister company Myntra. The Flipkart-owned online fashion retailer is looking to touch key targets by the end of the year. As per Myntra and Jabong CEO Ananth Narayanan they also want to get Ebitda profitability that is they want to see if (Jabong) can get to Ebitda-zero by December. Thirdly, they want to drive growth through new customers, not just existing customers. The sales growth will mainly happen through three things: marketing, selection and private brands.”

Meanwhile, Myntra’s private brands: Roadster, Dressberry and Anouk will be introduced on Jabong as well. Nrayanan insisted that the company has no plans to kill the Jabong brand, even though questions remain on whether there is a danger of Jabong getting cannibalized by Myntra.

Meanwhile Jabong has struck a partnership with leading iconic headwear brand New Era, available for men, women and children. The brand will be offered on Jabong in different variants with prices ranging from Rs 1,000 to Rs 3,000. New Era as a brand has a very rich legacy and for years has held exclusive licenses for major sporting leagues, be it the NBA in the US, the KFC Big Bash League in Australia or its partnership with Manchester United in England.

Jabong, in the past, has introduced a multitude of international sports brands in India such as ASICS, ALCIS, Hummel, DC, among others. It also recently launched M S Dhoni’s active lifestyle brand Seven on the portal. Jabong offers more than 1,500 international high-street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from more than 1,000 sellers.

Currently, Jabong drives close to a third of Myntra's revenues and serves a large base of users that do not shop on Myntra. The overlap of customers between the two platforms is just 30 per cent.