Voonik plans to launch private labels

In the next three months fashion e-tailer Voonik is planning to launch its own private brands. It is presently getting ready by adopting various means such as sourcing of material.

Initially, the e-tailer will do private brands on the seller fulfilled model itself. Right now, the e-tailer is trying to figure out which select sellers to choose for the project and how to source material seamlessly.

It was Myntra which began the trend of selling its own private brands such as Mast & Harbour, Roadster, Dressberry among others. Also, recently, Myntra decided to buy a majority stake in HRX, a lifestyle brand co-owned by Bollywood actor Hrithik Roshan and Exceed Entertainment. Private brands offer higher margins because companies get full control from sourcing to pricing and supplies. Fashion as a segment offers higher margins, usually in the range of 45-55 per cent for e-commerce players unlike electronics. If implemented right, private labels can be successful.

Voonik has hit an annual GMV run rate of 100 million dollars. Sujayath Ali, CEO, Voonik, is hopeful of hitting 250 million dollars (Rs 650 crores) run rate by the end of March 2017. Earlier in June, the company raised its series B round of funding led by existing investor Sequoia Capital with participation from Japanese e-commerce firm Beenos, Beenext, Tancom Investments and Times Internet.

Voonik was started in 2014 and today has 10 million registered users with 8 million app downloads.