ITV

Tag: Jabong

  • Fab.com’s Maria Molland joins American Swan board of directors

    Fab.com’s Maria Molland joins American Swan board of directors

    MUMBAI: The online global fashion and lifestyle brand American Swan has appointed Maria Molland to the company’s board of directors.

     

    Optimistic about her association with a vibrant brand like American Swan Maria Molland said, “It feels exciting to join a young, dynamic brand and there is a massive opportunity for American Swan vis-?-vis the increasing amount of capital going into emerging markets. I look forward to bringing my expertise to the brand and help them expand their impressive product range in global markets, as they enter their next stage of growth”

     

    As a new entrant in the e-commerce space, American Swan is one of the rare examples that has adopted fast and strived for efficiency in a competitive domain. Its initiative to adopt the hybrid model by venturing into online and offline channels simultaneously has helped it maximise reach and de-risk the business. The growth for the American Swan brand has been fairly fast-paced, encouraging and consistent. So expanding the brand’s footprint globally after establishing itself in India was an inevitable next step.

     

    American Swan director and CEO Anurag Rajpal added, “We are delighted to have Maria Molland join us. She brings broad, international experience and deep knowledge of the e-commerce industry. We are confident that the perspective she brings to American Swan and its Board is extremely valuable, given our strategic priorities of International presence and ecommerce growth.”

     

    Molland will bring her vast experience in ecommerce to advise American Swan on international expansion as it seeks to be the leading online fashion brand in emerging markets apart from bringing the best ecommerce practices. American Swan has grown quickly in the Indian e-commerce domain by offering a range of classic preppy fashion and authentic smart casuals to the urban fashion-conscious consumers who seek International brands and styling. It is rapidly expanding to other emerging markets in Asia.

     

    Molland is an executive who recently served as the chief European officer at Fab.com, one of the fastest growing ecommerce companies. The European business grew from negligible to more than 40 per cent of Fab’s global revenues during her tenure.

     

    Prior to Fab, Molland was the global managing director of Digital Ventures at Thomson Reuters where she managed teams in the US, Europe, India, China and the Middle East. Molland has also held global executive roles at Dow Jones and Yahoo.

     

    India has close to 10 million online shoppers and is growing at an estimated 3 per cent CAGR and is poised to witness significant growth in the next few years. It has been speculated that the industry will touch a benchmark of $34.2 billion by 2015. As the e-commerce business is growing by leaps and bounds, the growth in the sector is a reflection of evolving nature of the market and that of the consumer. American Swan as a new, dynamic brand is seeking avenues to increase its presence through top online aggregators like Myntra, Jabong, and Flipkart as well as through a strong retail footprint pan India. Four Cross Media (www.fourcrossmedia.com), a high-end global digital media conglomerate with a network of innovative businesses has invested Rs 40 crore in this venture.

     

     “We welcome Molland at American Swan. There are not many entrepreneurs who have had the chance to scale companies from small teams to hundreds of people globally, and Maria has done that. We are looking forward to leveraging her expertise with fast growing technology companies as we continue to grow our business,” says Four Cross Media Asia co-founder and managing director Puneet Johar.

  • Expect an inflexion point soon, says Jabong’s Praveen Sinha

    Expect an inflexion point soon, says Jabong’s Praveen Sinha

    MUMBAI: With our increasingly frenetic lives, especially in metros and towns, more and more people are opting to shop online instead of tiring themselves out at stores and malls.

     

    No wonder online retail is booming business with an e-commerce website going live almost every other day. That these portals often make little or no profit and are forced to raise funds to stay alive is a separate story. 

     

    The journey of Jabong.com – the Indian fashion and lifestyle e-commerce site co-founded by Praveen Sinha, Arun Chandra Mohan, Manu Jain and Mukul Bafana in January 2012 – is no different.

     

    One of the most visited e-commerce sites during the Great Online Shopping Festival 2013, reportedly, Jabong is currently raising a fresh round of equity funding, estimated at $100 million, of which it has received $27.5 million from British development finance institution CDC. Just last month, another online retailer, Myntra.com, raised $50 million through equity funding.

     

    While Jabong co-founder and MD, Sinha, refused to comment on raising funds, he spoke of where the company and the business of e-commerce is headed in an interview to indiantelevision.com.

     

    Excerpts…

     

    How would you think Jabong.com fared in 2013?

     

    The year was pretty good; in terms of growth and health, the financial and operational matrix, and when it comes to revenue. We saw twice the growth and almost thrice the revenue last year.

     

    The interesting insight is that in 2013, we saw more than 50 per cent purchases from consumers from cities other than the top four metros. Secondly, the combination of social media and mobile worked in our favour as both play the role of influencer and act as enablers for people to buy online. So, for us, these platforms have become more important. And with a good balance between payment options, we didn’t see a significant change/imbalance in terms of cash-on-delivery (COD) or online payment. As we grow, the percentage of online buyers is increasing, though not significantly, and that shows trust is building among people and they are putting more faith in us.

     

    Where do you see the company going in 2014?

     

    Similar growth is obvious. I think there will be an inflexion point, where we will see even more growth than what we are seeing today. I’m not sure whether that point will come in 2014 or 2015 and the reason I’m saying so is because the growth which I’m referring to will only happen in the fashion and apparel categories.

     

    These categories have the highest demand, followed by electronics. That said, if you compare India with other countries, there is a huge gap between where we are and where we need to be.

     

    For example in telecom, when we started, we had least penetrated landline numbers but with the onset of mobile, we saw good penetration. Now, it is really high. So, if we compare e-commerce to telecom penetration, e-commerce will see a huge jump. Internet penetration and usage for retailing is around 15-20 per cent in India while in other countries, it is up to 40-60 per cent. Therefore, the gap will be filled up though we don’t know if it will happen this year or next year or year-on-year.

     

    The e-commerce business has changed drastically over the years. What are the reasons behind the changes? How big is the industry now?

     

    There are multiple reasons for the change. Firstly, it is trust. There is a history to why people didn’t trust. E-commerce is not very new in the country; there were a few players already in the market but the quality of products wasn’t right, delivery was an issue, so was pricing. People were not happy with the experience. Secondly, there has been an increase in the number of people online. Thirdly, the players, especially new entrants, wanted to build on trust so they came up with return policy, COD. Fourthly, it was not only about selling unknown or luxury brands which only a few people knew about, but also popular brands. Assortment build was huge. It is now value for money. People are now getting a good choice and at a lower price. It is a win-win situation for the customers.

     

    Another point is about the infrastructure where logistics have evolved; some companies have built their own logistics to have better payment options. Also, brands are ready as they are getting more space. For instance, a brand with a presence in 40-60 cities would reach say 6,000 cities at one go through e-commerce.

     

    Do you see e-commerce companies cutting across age-groups or will they continue to target the youth?

     

    By the next generation, e-commerce will cut cross all ages. The internet is new, so most of the internet population is made up of people in the age group of 15-35 years. This age group is very comfortable using technology while the older generation spends more time online checking emails rather than buying. However, this will change over time and people will shift from just content to purchasing as well.

     

    Will too much competition benefit or harm the industry as companies have special discounts to lure customers?

     

    If you don’t give discounts, how do you make profit? Globally too, there are a lot of e-commerce companies but very few have scaled up. It’s not that these don’t give discounts.

     

    Both the offline and online worlds have their pros and cons. A strong plus point of the online world is that we don’t have to open up a high-end physical infrastructure. So, you don’t have high rentals and high operation costs. Also, you don’t have limited period of service. All these factors allow us to have savings.

     

    What e-commerce companies do is they give out that saving to customers as discounts so that the whole sector grows. Even today, the sector is not even one per cent of the economy. Even in the case of developed countries like the US and developing ones like China, this was the model followed before it became profitable.

     

    Which period of the year is best for Jabong.com? What makes it the best?

     

    There is no best season for us. We create our own throughout the year. It is mostly occasion-based, for example Diwali, Valentine’s Day etc. but we create our own occasions and repeat the patterns.

  • Fastrack launches helmets; eyes revenue of Rs 500 crore

    Fastrack launches helmets; eyes revenue of Rs 500 crore

    BENGALURU: Titan’s urban youth brand Fastrack announced the launch of a new category – helmets in Bengaluru. The new range will see 24 different variants for ‘guys and girls’ in different colours and graphics, making them a style-essential for its TG. Titan plans to include a range of bicycle headgear and accessories in the near future.

    Fastrack, which was launched in 1998, has seen revenue growth of more than fifty times from Rs 30 crore to Rs 770 crore, hence making it the largest fashion accessories brand in the country, claim Titan officials. By the end of this fiscal in March 2014, the company expects revenue of just Rs 8 to 10 crores from the helmet stream and about Rs 50 crore during FY-2014-15.

    We are looking at revenue of about Rs 500 crore from this stream over the next five years, says Titan managing director Bhaskar Bhatt

    The company says that the present size of the organised helmet market which constitutes about 45 per cent of the overall market is Rs 400 crore in India and is estimated to grow to about Rs 1500 crore over the next five years. “We are looking at revenue of about Rs 500 crore from this stream over the next five years,” reveals Titan managing director Bhaskar Bhatt to www.indiantelevision.com.

    “India has one of the highest numbers of two-wheelers in the world. With unorganised players currently driving the helmet business, the category has a large potential in the market. We are trying to buck the trend – even if a person doesn’t want to buy a helmet, she or he will buy it because it’s from Fastrack, because we believe that it is not the helmet that the person will buy, but brand Fastrack,” Bhatt further adds.

    For the present Fastrack helmets will be sold through the 147 Fastrack stores across the country. Titan plans to increase the number of Fastrack outlets to 200 by 31 March, 2014. The company also plans to sell helmets online through its own portal as well as other fashion online retailers such as Myntra, Jabong, etc., in the near future.

    “We are looking at outdoor promotions over the next few months. We’ll probably launch a multimedia campaign including TVCs sometime in the near future,” informs Titan Vice President and Chief Marketing Officer Ronnie Talati. Lowe Lintas handles the creative duties and Maxus the media buying for Fastrack.

    Company sources peg the outdoor Fastrack helmets campaign at about Rs 2 crores till the end of this fiscal, and then depending upon the response, will chalk out a campaign for the next year.

    “Being in the business of youth fashion accessories, helmets were a natural extension for us after watches, sunglasses and bags. Many of today’s youth use protective gear to make bold fashion statements. The youth being the dominant consumers for the category, launching the helmets range under the Fastrack umbrella would help keep a firm grip on the capricious youth market,” adds Talati.