Published
Apr 13, 2017
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Abof eyes 15 percent online fashion market share by 2020

Published
Apr 13, 2017

Aditya Birla Group's online fashion retailer abof.com aims at growing business by three times in the current fiscal which will help reach its target of achieving 15 percent market share of India’s online fashion industry by FY2019-20.


abof



"In the current fiscal (2017-18) we expect to grow our business by about three times from existing levels and expect a market share of about 10-15 per cent in the next three years," abof.com president and CEO Prashant Gupta told a news agency.

He indicated that in the last 12 months, abof.com's gross merchandise value (GMV) in its peak month was Rs 25 crore, averaging to Rs 300 crore in 2016-17. Of this, its net revenues were about Rs 10 crore a month.

"While breaking even is sometime away we are not losing money on our orders, and have completed the last fiscal with very healthy order margins. This means we are able to recover the cost of servicing an order," he elaborated.
 
The company is not focused on discounting its goods, but for the next 3-5 years, they will have to continue some discounting to stay in the game, Gupta said.

"Unfortunately, the market is at a certain level and we have to discount to an extent to be seen as a comparable option to the consumer. Hopefully, that will change in the next 3-5 years," he said.
 
The online fashion store retails about 125 brands, and will bring Forever 21 to its stable in the next few months, Gupta said. "We don't see any gaps in the range. If we add brands we will also delete brands, based on consumer insight."

The online fashion market in India is dominated by Flipkart which owns fashion portals Myntra and Jabong.
 

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