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Unlike rivals, Jabong will continue to operate its web portal

By Sujata Sachdeva

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While Myntra, the leading fashion platform has announced its plans to be the app-only format from May 15, its closest rival Jabong has decided to continue with its website. The company believes that while a customer should have a choice of platform, it is also easier to open several websites on a computer or laptop to compare products and prices at one go and this would be a bit difficult on app only format.

After Myntra, buzz is that even Flipkart is considering the app-only route within a year. Witnessing rise in mobile traffic and smart-phone users from 6 percent a year ago, increasing almost 10 times with a year and a half, Flipkart plans to take advantage of the prospects this business proposition holds. Myntra, which was acquired by Flipkart last year, has stopped selling on its website. Both Flipkart and Myntra have already shut their mobile websites directing visitors to their apps. Currently, Myntra witnesses around 80 percent of its traffic and 70 percent of sales driven by its mobile app. Flipkart also gets 60 percent of sales through its mobile app.

Jabong shipped 8.7 million orders last year of which 5.9 million transactions represented products sold by Jabong while another 2.8 million orders or close to one in three orders were through its marketplace. This means the firm handled on an average 23,835 orders a day last year as compared to 16,164 in 2013. The company’s net revenues, including sales by third party vendors increased to Rs 811.4 crores last year. However, its loss at an operating level rose to Rs 454 crores as against Rs 236 crores in 2013.

Jabong is now a part of a new holding firm called Global Fashion Group (GFG), along with four other online fashion startups backed by tech incubator cum investor Rocket Internet and Swedish investment firm Investment AB Kinnevik.

Jabong