Zivame reports 84 percent jump in net losses

As per filing with the registrar of companies, online lingerie brand Zivame has reported a 84 percent rise in net losses at R 54 crores in FY 2016. Actoserba Active Wholesale, the promoter company reported a 38 per cent growth in its net sales at R 62.6 crore during the period. The company’s revenues are the commission it gets from retailers on sales.

Having started as a marketplace and aggregator of different brands such as Jockey and Enamor, Zivane, like other fashion portals such as Myntra, YepMe, Craftsvilla, and FabAlley, in 2011, Zivame decided to also venture into private labels in search of better margins and product quality control. The company has three private labels namely Penny, Cou Cou and Rosaline under its name.

Due to investment in its private label and product design, the total expenses of the company jumped 57 per cent from Rs 75.5 crores to Rs 118.8 crores. Inventory cost of the company grew 35 per cent to Rs 47.8 crores while advertising and marketing expenses increased to Rs 46.7 crores from Rs 22.8 crores in the previous year, according to the filing.

In the current fiscal, Zivame will be expanding its presence in the offline retail market via franchisee model. By the end of this year, the company plans to open 40-50 brick-and-mortar stores. The omni-channel strategy of the company will look at setting up experience studios across India to educate women and help them build their lingerie wardrobe.