After recording a 50% increase in its profits, Jabong is aiming for a 40% increase in its sales by 2018. CEO Ananth Narayanan says that the company will be focussing on three prime areas to push sales – private brands, marketing, and selection. He also points at three targets the company is looking at,
“We want to hit 40% growth year-on-year. We also want to get Ebitda profitability—we want to see if (Jabong) can get to Ebitda-zero by December. Thirdly, we want to drive growth through new customers, not just existing customers.”
“There will be more marketing that we’ll do. Secondly, the app will become much more engaging than what it is now. We can start to integrate more content into the fashion app than we do now. There will be a bunch of product-related changes. Thirdly, we will continue to get more brands on Jabong.”
We wonder why the naysayers keep speculating that Jabong will be closed down, because the companies (Flipkart and Myntra) continue to maintain that it will remain functional. Narayanan also shut down speculations that Myntra would absorb Jabong. He said,
“There’s no question in my mind that the (Jabong) brand is continuing as a separate one. We obviously don’t want to split inventory—we want to make the same inventory available in both places, like a seller would.”
After its merger with Myntra, things are looking fairly good for Jabong. It has tided over some of its hurdles, and is set on the path to good fortune. At this rate, the company might just achieve its increased sale target.