Jabong to witness 55 percent revenue growth in FY19

By

Maverick Martins

Published
Jan 23, 2018

​Flipkart owned online fashion retailer is expecting a revenue growth of 35 percent and 55 percent for the financial years 18 and 19 respectively as a result of its marketing and customer acquisition strategies.
 

The parent firm Myntra which acquired Jabong in a $70-million deal has been promoting Jabong’s products aggressively by investing about 6-7% of the total sales revenue in marketing.
 
The marketing spend is slowly starting to show results as Jabong is expected to grow by the next financial year from a negative growth of 16% in FY16-17.

The online retailer known for its fashion brands has also expanded its product portfolio and forayed into the beauty, toy segment which has helped the firm expand its consumer base in the country. At present, apparel segment contributes the highest to the Jabong business with around 45 percent, followed by footwear which is around 11-12 percent.
 
“Jabong is expected to see a 55% revenue growth during FY19 –– a 20% point jump over its estimated growth for the current financial year, according to Ananth Narayanan, CEO, Myntra and Jabong.
 
“Growth for FY18 is estimated at 34.5% from a negative growth of 16% in FY16-17, so the effective growth for FY18 is at 50%,” Narayanan told Economic Times.
 
The Jabong-Myntra management is eyeing profitability in the next financial year and is hoping to earn a combined GMV of $1.4-1.5 billion (close to Rs 10,000 crore), with Jabong expected to contribute around $400-500 million
 
Jabong is expecting a rise in its customer base along with 80 percent growth in sales revenue during its upcoming Big Brand Sale from January 25 to 28.
 
 “The big sale events at both Myntra and Jabong contribute to about 30% of the overall GMV and 37% to our overall customer acquisition,” added Narayanan.