ShopClues banks on exclusive brands for growth, adds fashion label Meia to portfolio

E-commerce major ShopClues has unveiled its new fashion brand Meia to portfolio as it looks to build its fashion vertical in order to compete with leading online fashion players in India.
 
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Meia is the first private label offering in the fashion space by Shopclues under which it will offer apparel and accessories priced under Rs 999 (approx $15).
 
"Meia, which means strength, will target women in the age group of 18-35 years. While we will own the designs, sellers can use them to design, manufacture and sell the products on our platform," ShopClues Senior Director and Business Head (Fashion) Ritika Taneja said in a statement.
 
The etailer is also looking to further expand its portfolio to take on top players like Myntra, Flipkart and Amazon by adding more private labels to its brand portfolio. Fashion contributes around 50 per cent of the total orders on its platform (over 3 million units a month) and 55-60 per cent of its revenue.
 
 The firm has confirmed that it will add an exclusive men’s brand in the month of November. It is expecting 10-15 per cent of the company's revenues in the fashion category to come from such exclusive labels.
 
ShopClues had reported revenue of Rs 179 crore (approx $27.6 million) for the year ended March 31, 2016 with losses at Rs 383 crore (approx $59 million).
 
"Our focus has been on filling the need-gap of consumers of tier-II and III towns of India. Our total buyer base from these cities is more than 70 per cent and the demand for quality, affordable designer products from them is on the rise," ShopClues Co-Founder and Chief Business Officer Radhika Aggarwal.
 
ShopClues is following the tried and test model by adding private labels to its platform as they offer better margins which will help the firm on its path to profitability.

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