In the online fashion retail, Jabong has always been a dark horse. The company has had a tumultuous ride since its inception in 2012. The ownership has changed hands, it came to the verge of closure multiple times, faced cash crunch, but finally seems to be on terra firma now.

BT charts the company’s journey and its hits and misses.

The journey so far

Present day – merger with Myntra and the turn of fortune

Despite the rosy picture the company continued to paint, Rocket Internet had been wanting to give Jabong away from a long time. While it managed to sell off FabFurnish (to the Future Group), no one wanted the loss making fashion enterprise. After a long series of unsuccessful takeover talks with Snapdeal, Flipkart owned Myntra purchased Jabong in July 2016. Subsequently, Myntra planned to combine its revenues with Jabong to ensure quicker growth.

Jabong retained its individuality despite the takeover, and had its own sale idea during the festive sale. While Flipkart held its annual Big Billion Days sale, Jabong launched ‘You are the festival’, a sale to celebrate the shoppers, a few days after the big names concluded their first round of sales. Encouraging shoppers to ‘Be you’, the company launched an extensive ad campaign to popularise the sale.

Things looking good

Jabong recorded a 50% increase in its month on month profits in October. CEO Ananth Narayan (who helms both Myntra and Jabong) gave credit to the joint operations for the success.

He said, “Synergies with Myntra as well as cross-learnings between the companies have helped accelerate customer acquisition and better customer experience.”

While rumours abound that Flipkart might shut down the company, the former has confirmed that Jabong will go full steam ahead. What do you think about Jabong’s future prospects? Let us know in the comments section. If you need any help with managing your ecommerce business, drop us a line. Browntape is India’s largest ecommerce services provider, and we can help you manage your business.

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