Zivame losses at Rs 54 crore, eyes offline market for growth
Online lingerie brand Zivame reported a more than 84% rise in its net losses at Rs 54 crore during FY16, according to company’s filing with the registrar of companies.
Actoserba Active Wholesale, the promoter company, reported a 38% growth in its net sales at Rs 62.6 crore during the period.
Total expenses of the company jumped 57% to Rs118.8 crore from Rs75.5 crore due to investment in its private label and product design. Inventory cost of the company grew 35% to Rs 47.8 crore and advertising and marketing expenses increased to Rs 46.7 crore from Rs 22.8 crore in the previous year, according to the filing reviewed by the Financial Express.
In 2011, Zivame started as a marketplace and aggregator of different brands such as Jockey and Enamor but later decided to venture into the private labels space to increase its margins and boost revenues.
In the current fiscal, Zivame will be expanding its presence in the offline retail market via a franchisee model and plans to open 40-50 brick-and-mortar stores by end of next financial year to cut losses and increase its revenues.
The omni-channel strategy of the company will look at setting up experience studios across India to educate women and help them build their lingerie wardrobe.
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