Jabong does well in Jan, looking to break even shortly

Leading fashion etailer Jabong has witnessed its highest performance in January 2016, a figure unparalleled in the time since its inception in 2011. Jabong’s parent company Jade eServices, has recorded the highest month on month growth of close to 35% in January 2016.

Sanjeev Mohanty, CEO of Jabong said, “2016 has started off on a momentous note for us with January becoming our most successful month yet, where we gave a glimpse of the future of Jabong to our consumers, shareholders, business partners and competitors.”

The plan ahead: not focussing on private labels for now

Jabong nurses ambitions to be the first ecommerce group to break even. The company plans to achieve its goals by focusing on its marketplace model.

“We will be getting more brands on our platform but we are not at all focusing on private labels,” says Mohanty. “Private label will be a strategy three years from now. We don’t have the bandwidth right now for private labels,” he said.

While agreeing that discounting is key to gaining market share, Mohanty says to build a profitable enterprise, a company has to concentrate on internal efficiencies. He maintains that the apparel renting industry will not impact the fashion retail.

Mohanty says that the demand for specific apparel, like holiday wear and beach wear, will dominate the industry in the coming months. This demand will keep the industry on its toes.

Looking at future growth

The company plans to break even in three years and is targeting a GMV of $800 million by December. Global Fashion Group (GFG), which is running fashion ecommerce companies including Jabong, is planning to pump in more capital in the India-based online store.

Jabong was having a difficult time in the recent past; it appears to have overcome that phase. The company may just set the record for being the first company to break even.