The race for profitability is on in ecommerce. And, according to industry observers fashion will be at the forefront of online retail in the near future. This puts more pressure on platforms which specialise in the sale of fashion commodities. Myntra expects to be profitable by March next year, Voonik intends to make profits in less than 10 months while the big players in ecommerce like Flipkart are Amazon are also getting their act together to make profits.
Koovs is another online fashion specialist looking to make positive figures. The fashion etailer expects to see profits by the financial year 2018. An 87% spike in sales earned it £18.6 million, as per records for the entire year ending on 31 March 2017. This has made the etailer more confident in its capabilities.
Foreign fashion flavours
Koovs is shaped after UK’s successful online fashion retailer Asos. It is a 250-member company with an office in Gurgaon and a small team in London. The firm is listed on London’s junior stock market AIM, where is it has a 4% market share of the fashion market in India.
The online fashion specialist recently got into a partnership with Souq.com (by the end of March, Amazon.com bought Souq to expand operations in the region). Souq is the biggest online retail platform in the Middle East. Per month, the platform receives around 45 million visits from online shoppers. Through its partnership with Souq, Koovs will sell its private label line in the Middle East.
Concentration on private label
Many are banking on private labels to obtain profitability. According to Koovs’ chairman, Waheed Ali, as the company moves into the second phase of expansion it would like to accelerate things. And, it appears that the platform will also be using its private label to meet its profit goals. 40% of the retailer’s sales already come from its private label.
Ali said, “We will further enhance the penetration of our private label as the idea is to double the units we stock by next year. We will also continue with our marketing campaigns and spruce our logistics and supply chain.”
Funding comes easily to Koovs. This will be vital for the company to keep expanding. It raised £10.9 million during a funding round late last year. But, funding is not the only thing the etailer needs stay alive in ecommerce. Koovs also need to get ahead of the Myntra-Jabong-Flipkart combination, which covers nearly 70% of Indian online fashion.