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Jabong to focus on top-selling high-end brands

By Meenakshi Kumar

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Online fashion retailer Jabong will cut its low-margin brands, including three-fourth of its private labels and instead focus on top 200-300 brands. This is being done to cut losses and position itself as a platform for premium lifestyle products. The company, a unit of German e-commerce incubator Rocket Internet, has realised that it had spread itself too thin in the last few years. So now it has decided to shrink its portfolio.

The company managed to reduce its losses to about a third in 2015 to Rs 46.7 crores from a year ago after a clampdown on discounts but the move slowed sales growth to 7 per cent at Rs 869 crores. In the last few years the company has launched several global brands such as Dorothy Perkins, G Star Raw, Tom Tailor, Topman and Bugatti Shoes exclusively for India. Now, it will focus on bestsellers like Sangria and Incult. It also plans to expand its ethnic and sports portfolio.

India’s overall online fashion market is expected to reach USD20 billion by 2020. Jabong is hoping to get 40 per cent of this market, which is Rs 750 and above with focus on the upper mid-priced market to premium and super premium.

Jabong competes with other online fashion portals such as Koovs, Myntra and Voonik. Experts believe that this consolidation of brand portfolio may help in clear value proposition to the customers.

Jabong