Jabong revenues grow 50 percent in October

Jabong saw a 50 percent month-on-month growth in revenues during October. Bought by Flipkart-owned Myntra a few months back, Jabong has managed to holds its own and multiple factors helped turn around Jabong’s fortunes, one of which was access to Myntra and Ekart for logistics. Jabong slashed discounts by two or three percentage points to make the company's unit economics positive. Selections were improved. Lower end items that were not doing well were cut out. A few Myntra brands were introduced on Jabong. This made way for higher margin capture and better results.

Jabong witnessed the highest ever net revenue this year on weekdays and the average order value increased by 10 per cent while the app installations increased by 40 percent. 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.

Sales on Jabong in October were boosted by festive sales. The company is supposed to be the largest player in India’s high-margin online fashion space. Next year, Jabong hopes to grow between 30 percent and 50 percent. Myntra is closer to 60 percent in terms of growth.