Lingerie retailer Zivame turns into a private label business

Online lingerie retailer Zivame (Actoserba Active Wholesale) has turned a private label business. This move that was done by discarding aggregation of brands will help it earn higher margins and bolster its bottom line, said two people aware of the development. Private labels are brands owned by retailers and have higher margins than brands owned by other firms. For instance, private labels in fashion can fetch margins of 30-60 percent which is almost double the margin on other brands.

Zivame started out as an aggregator of brands including Enamor, Amante and Jockey among others, but launched private labels in 2013 in an attempt to boost margins. The company, which owns three private brands namely Penny, Cou Cou and Rosaline will rebrand these offerings as Zivame to create a single brand.

Zivame also plans to adopt the omni-channel strategy by launching offline stores through the franchisee model which will essentially act as experience centres. The firm is offering franchises at Rs 25-30 lakh for a 1,000 square feet store. Besides, Zivame is testing global waters and has started shipments to countries like the US, Canada and the United Arab Emirates among others which have a sizeable Indian population.

In the international market, Zivame competes with the likes of Buttercups, Clovia and Pretty Secrets among others. All of Zivame’s competitors sell their own brands.