It looks like Jabong is finally having a ray of sunshine. After multiple rounds of back and forth about it, the company has announced that its profits have increased in by 50%. Fashion etailer Myntra purchased Jabong in July this year, putting an end to the speculation that Snapdeal was going to buy it.
The company said,
“October saw month-on-month growth of 50 per cent in net revenues as well as a surge in customer satisfaction scores.”
CEO Ananth Narayan attributed the developments to the positive influence of its new parent. He said,
“Jabong has witnessed a strong turnaround. I am delighted that revenue growth is back on track, margins are getting better and the customer experience has significantly improved. Synergies with Myntra as well as cross-learnings between the companies have helped accelerate customer acquisition and better customer experience.”
‘Should we close it or should we keep it?’
“Is there a need to maintain two separate fashion brands, with Flipkart too looking to sell fashion aggressively? That is being evaluated.”
Flipkart did not include Jabong in the Big Billion sale, but the latter had its own party. It ran a campaign that celebrated the shopper with ‘You are the festival’. There were a lot of rumours regarding the company’s closure, but Narayan put them to rest with a succinct, “there are no plans to shut down Jabong.” Moreover, experts said that closing the company would end up directing customers to rival Amazon’s door.
With the acquisition, Flipkart holds nearly 70% of online fashion. The company has been fairly mum on its plans for Jabong. However, the latest news brings some cheer to Jabong after its long dry spell.