Prashant Gupta, CEO at Abof.com, advised Sagar Malviya that the etailer goals to promote a minimum of half its merchandise on full worth, in an effort to make revenue in a market the place greater and low cost-led rivals Flipkart and Amazon management almost three-fourths of the on-line style market.
You are nonetheless perceived as a style portal for Aditya Birla Group manufacturers and not a standalone etailer.
That impediment we needed to overcome once we had been launching, however now most of the manufacturers are open-minded about it. I feel most manufacturers are extraordinarily snug now saying that we’re actually unbiased. That burden we needed to bear about two years again once we had been signing up everyone.
Why have you ever not caught to your preliminary proposition of no low cost and curated portfolio of style manufacturers?
About 30% of the market is shopping for for comfort and 70% of the market is in all probability shopping for for reductions. A superb retailer all the time has this quantity to be extra like 50%, but it surely is a journey we’ve to traverse and I feel over time we are going to get there. We have added a brand new function -Never on low cost -that means the buyer will not wait. That was the perception once we launched SKULT by Shahid Kapoor again in October and have not put any low cost on the merchandise. It has develop into our bestseller. So we’ve reached out to different manufacturers with the new technique.
Why ought to customers, and even sellers, come to you when the competitors is greater each by product vary and reductions?
Our pitch to sellers all the time has been that we are going to be differentiated and we will provide you with prominence and we are going to place you the method you need to be positioned. We might not have a really giant scale measurement in contrast with all the different gamers however for a few of the manufacturers, we’re in all probability very related in measurement when it comes to scale of enterprise. If other people have, say, 2,000 to 3,000 manufacturers and we’ve solely 120, then mechanically we’re offering much more scale to the similar manufacturers.
Our goal client is not the man who is looking for a deal, however any individual who is looking for the best style in the most handy method of purchasing. We have a one-step trade the place our particular person collects the outdated product and delivers the new one simply as soon as. There is additionally free at-house alteration. One of the largest ache factors on this business is refunds and we’ve a mannequin the place we offer refunds to you inside 24 hours of pickup. Nobody else does it.
As a late entrant, do you consider client could have extra stickiness to competitors equivalent to Amazon and Flipkart, Myntra and Jabong?
Now, one among the issues that we’ve not carried out is we’ve not gone to city and carried out lots of advertising. Until you’re very clear what you’ll be able to ship, advertising ought to not attempt to promote a nasty product. The purpose gross sales are doing properly, however the revenue is dangerous in India is as a result of you could have ended up with a discounting mannequin to drive gross sales.You say, okay, I need to get to `50 crores. If I attempt to preserve my pricing at full worth or 30% decrease you realize I will not get there. What do I do? I mainly low cost. Obviously, you’ll get topline. At good reductions, something sells in India.
What’s your technique for making income?
We in all probability began with solely about 60 manufacturers after which we’ve expanded slowly to 125-130. I do not assume we are going to develop past what we’ve. We are fully purchase and promote enterprise, which implies we purchase all the merchandise, and preserve it in our warehouse. We are not a market. We need to be differentiated in buyer expertise and market buyer expertise is pathetic. I imply there is no different option to describe it.