- Sujata Sachdeva |
For the first half of 2014 Jabong’s net revenues have risen almost three-fold. Operational loss was up 22.2 per cent. The gross margin dipped to negative 17.5 per cent from negative 13.7 per cent in the first half of 2013. This is due to the company’s continued investment in its top line growth following market pressure of higher discounts.
The website’s dhipment of orders more than doubled. Jabong’s private labels (Lara Karen and Sangria) currently account for 20 per cent of its shipments. Jabong has also opened new offices in the United Kingdom and Spain that are primarily focused on the design of its private labels. The online fashion store has also started a service, where consumers can pick up their orders from the nearest coffee shop, petrol station or tour operator and also get cash refunds from the partner. The company has piloted this service in 39 towns.
Around 70 per cent of all orders placed in locations that offer same-day delivery are delivered within a day. Around 72 per cent of total deliveries are made using logistics services.
Jabong was founded in October 2011. The store popularized the concept of trying out products before purchasing them. It’s one of the most valuable companies owned by the German e-commerce group Rocket Internet.