Jabong expects 55% revenue rise in FY19

Online fashion portal Jabong is expected to see a 55% revenue growth during FY19 - a 20 percentage point jump over its estimated growth for the current financial year, according to Ananth Narayanan, CEO, Myntra and Jabong.
 
The company, launched by German investor Rocket Internet, was acquired by Myntra in 2016 at a time when its growth rate was negative 16%.
 
"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 ET.
 
The combined GMV of Flipkart-owned Myntra and Jabong for this financial year is being estimated at $1.2 billion, of which around $400-500 million is being contributed by Jabong, as per industry estimates.
 
While Myntra recently concluded its annual flagship sale, Jabong is expected to kickstart its annual Jabong Big Brand Sale on January 25. It hopes to acquire a maximum of one lakh customers, compared to 40,000 during the 2017 sale.
 
"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. Jabong is targeting 80% sales growth during the four-day sale and is anticipating a seven times revenue as compared to average daily sales.
With this financial year coming to a close, Jabong is thinking of strategies for the upcoming financial year with beauty and personal care categories forming a major focus. The category, which currently contributes to 5-7% of the company's overall revenue, is expected to grow five times during FY19.
 
While Myntra would focus on launching its own offline stores, as ET reported last month, Jabong does not have plans to foray into the brick-and-mortar sector.
 
"Jabong is positioned as a branded fashion destination for the affluent and we will focus on adding more value-added services, concierge services, next-day deliveries, etc," said Gunjan Soni, head of Jabong.
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