Shop Clues now focuses on unbranded apparel retail

Shop Clues is now focusing on non-branded apparel and accessories. This will include women’s ethnic wear, clothing, jewellery, fashion accessories and footwear. About 50 per cent of its orders come from Tier III and IV markets, which include cities like Tiruvallur, Vellore, Chittoor, Ernakulam, Tiruchirapalli and Madurai in south India and Bardhaman, Aizawl and Agartala in the east.

While on the demand side Shop Clues services Tier III and IV cities, on the supply side it also on-boards smaller merchants selling unbranded clothes and accessories in these areas. About 80 per cent of its sellers are small and medium enterprises. The company ships about 1.2 million fashion products a month and the category has already grown to account for 50 per cent of the company’s overall annualized gross merchandise value and about 65 per cent of net revenue.

Shop Clues derives margins of 20 to 30 per cent from the fashion segment while the rate of returns is also around 20 to 30 per cent. On a standalone basis, the apparel category from the larger fashion segment is profitable for Shop Clues. The company has launched a dedicated television marketing campaign for the category and aims to double sales from fashion over ten months.