In 2014, Rocket web collaborated with Swedish investment bank Kinnevik to make international Fashion cluster (GFG) at a value of Rs 21600 Cr. Following Flipkart’s acquisition of Myntra, Jabong was in talks with Amazon for a buying deal for $1 billion; however it failed to pass.
Indian e-commerce had already witnessed the birth and growth of the many fashion portals by then: Voonik, Limeroad, and fashion like Raposo and Cooper among them. Horizontal players like Amazon, Flipkart, and ShopClues are giving them a last their cash.
Here all-new strategy to take on Myntra and others
Restructuring the business
Jabong has been performing on restructuring the business since Sanjeev joined, beginning with hiring the highest leadership team. Former eBay Bharat Head B Muralikrishnan joined as COO, and Snapdeal class Management VP Rahul Taneja came in as CBO.
Myntra is building on core classes like women’s wear, sportswear, and men’s wear. We are going to add new classes like beauty, accessories, and residential décor. Rather than building multiple non-public labels, we tend to are focus on our western wear assortment Miss Floyd Bennett and ethnic wear drink, Myntra is additionally bobbing up with boots and non-sports footwear for men and ladies, and additional denim wears assortment for men.
Where did Jabong go wrong?
Building consequent future demands a warm forgiving of the past, the mistakes, and failures. Righting Jabong’s wrongs were essential for the comeback. Sanjeev believes that understanding the patron is extremely vital. There are totally different stages of the growth of an organization. At one stage, everything was regarding growth, and that we lost sight on the patron. We tend to are currently back to specialize in customers while not pressure on hyper growth.
Did Jabong fail to maximize Myntra going app-only? You will alone capitalize to an extent – finally, you’ve got ought to specialize in your core strength as a full.
Fund crunch problems
Raising cash and delivery the business back on the right track while not resorting to an excessive amount of discounting is Jabong’s biggest challenge. If you have got full-grown the business supported discounting, the instant you stop it, your rate stalls. Like in offline retail, you have got to induce the correct service path, distinctive merchandise, and most alternative and transcend discount.
In January, Jabong according to 14 % sales growth – a so much cry from its rivals’ 80-200 %. However, several of Jabong’s competitors don’t seem to be doing okay. Fashioner has close up, Myntra won’t declare their numbers in losses, and ABOF is nonetheless to form a mark. Those doing well are those with Omni channelstrategy: Zodiac and Fabindia sell on-line through their own store and market by dominant rating and supply.