ShopClues banks on fashion for growth, customer acquisition

By

Maverick Martins

Published
Aug 24, 2018

E-commerce firm ShopClues is banking on fashion and lifestyle business to drive future growth and confident that its fashion private labels will help the firm acquire new customers.

The firm, which launched its second fashion label for women 'Code Yellow' early this week, is optimistic of the brand performing well in tier II, III and IV regions.
 
The fashion category currently contributes more than 50 percent of the company’s total sales revenue and expects it to grow further with the addition of new labels to this category.

Earlier in the year, ShopClues posted revenue to Rs 275 crore (approx $ 42 million) with losses of Rs 208 crore (approx $ 32 million) for the year ended March 2018.
 
"Just like 'Meia' last year, Code Yellow is an initiative to make further inroads into the fashion markets of tier II, III and IV regions. These markets have seen a surge in their women buying western wear. Over 70 percent of our buyers come from these cities," ShopClues co-founder and chief business officer Radhika Aggarwal said in a statement.
 
“Fashion and lifestyle is the top category in terms of revenue growth, contributing more than 50 percent of the company's total sales. With our aggressive growth plans in place, we expect Code Yellow to acquire almost 1.5 lakh new customers by the end of 2018," Aggarwal added.
 
ShopClues entered the fashion private labels space last year with the launch of Meia, under which it offers apparel and accessories.