Luxury etailer Darveys close to reaching break even

Launched last August, by Nakul Bajaj, online marketplace for luxury brands, Darveys boasts of over 8,000 registered members and around 30 orders per day with an average ticket-size of Rs 21,000. The company is said to be close to achieving a break even soon.

Bajaj, who kicked-off the online venture with Rs three crore borrowed from his family, is a members-only website offering premium luxury brands like Prada, Lulu Guinness, Dolce & Gabbana and Alexander McQueen through a tie-up with 300 small luxury boutiques and vendors across the globe. What set Darveys’ apart are the prices that are 30 to 70 percent lower than those available in Indian retail stores. For example, a Prada satchel that sells in Indian store for over Rs 2 lakh is available on Darveys for half the price. Similarly, Dolce & Gabbana tote bags with a price tag of Rs 1.39 lakh sell on Darveys for under Rs 80,000.

However, the firm has also witnessed its share of lows with Burberry India filing a case in the Delhi High Court seeking compensation from and restraining Darveys from marketing, advertising and selling Burberry products at discounted prices on its site. In another lawsuit filed against Darveys by Jimmy Choo within 40 days of starting the business restrained the startup from advertising, selling or offering any products bearing the trademark 'Jimmy Choo' without clarifying that the products are not subject to warranty or exchange by Jimmy Choo's India partner. The court also said that the company must also make this stand clear in all its advertisements for the sale of Jimmy Choo products. Bajaj has now started using carry bags of the boutique that ships the product to the consumer instead of the ones having Darveys logo.