Voonik to focus on private labels to boost profits

Bengaluru-based company fashion e-tailor Voonik is now focusing on private labels to boost profits and go public by 2019. Voonik which reported revenue of Rs 117 crore in 2016-17, launched its private label for women six months ago and for men a month ago. They together contribute 10-15 per cent to the revenue. Sujayath Ali, Co-founder, Voonik, says these brands should contribute almost 50 per cent by the end of this year. Voonik aims to create affordable brands through its private labels and cater to lower segments across the country.

The company, which employs 170 people, plans to expand its team by 30 members. While metros contribute 30 per ecnt to Voonik’s traffic, Tier II and III cities account for the majority, 70 per cent. Ali says Ola and Uber drivers, and lab technicians form a major customer segment from metro cities.

The private label designs will be based on popular designs and will be automatically matched and printed accordingly. Eventually, with the increase in sales, the variety and number of labels will be increased. In the next four months we look to see profitable growth, primarily in our fledgling private labels business. In the meantime, the company is running a pilot with offline stores in smaller cities.