Online fashion retailer Jabong.com expects its revenue to jump to $1 billion (₹6,100 crore today) in 12-16 months from $25 million now, according to a top official.
If it happens, Jabong will be the second e-commerce player to hit $1 billion in gross merchandise value after Bangalore-based Flipkart, which recently achieved the milestone, a year before its target.
“We are on a fast growth track and most of our sales are being driven by premium brands, which are sold exclusively on our site. We want to expand that segment,” said Arun Chandra Mohan, founder and CEO of Jabong. “We plan to get about 10 top European and UK brands this year, including Miss Selfridge and Blue Saint.”
At present, Jabong gets about two million hits every day.
The retailer’s target is in line with the fast growth of the Indian e-commerce industry.
According to retail consultancy Technopak Advisory, online retail sales, which account for less than 1per cent of the total retail industry in India, are expected to grow to $76 billion by 2021, from $600 million at the end of 2012.
The Rocket Internet-backed portal already sells international brands such as Desigual and Jack and Jones. It recently launched Dorothy Perkins, a 100-year-old high-street fashion brand from the UK.
“Premium and designer labels are a high margin business that can go up to 60-70 per cent. While affordable brands will push our volumes, high-end brands will help drive profitability,” Mohan told Business Line during the launch of Dorothy Perkins at Lakme India Fashion Show, where it plans to sell the garments through Google Plus hangout.
This means one can buy the garments right there as models walk the ramp.
Expansion driveAccording to Mohan, Dorothy Perkins alone will fetch Jabong about ₹50-60 crore in the next 10-12 months.
The portal, which raised about $100 million from private equity players led by UK-based CDC last month, is on a major expansion drive. Most funds will be used in extending the product catalogue, beefing up technology and the branding exercise and also to launch a full-fledged fashion magazine.