Aditya Birla Group’s online shopping portal abof.com aims at growing business by three times in the current fiscal which will help reach its target of achieving 15 per cent market share by financial year 2019-20.
“In the current fiscal (2017-18) we expect to grow our business by about three times from existing levels and expect a market share of about 10 to 15 per cent in the next three years,” President and CEO, abof.com, Prashant Gupta said.
He indicated that in the last 12 months, abof.com’s gross merchandise value (GMV) in its peak month was Rs 25 crore, averaging to Rs 300 crore in 2016-17. Of this, its net revenues were about Rs 10 crore a month.
“While breaking even is sometime away we are not losing money on our orders, and have completed the last fiscal with very healthy order margins. This means we are able to recover the cost of servicing an order,” he said.
“Abof.com will concentrate on funding the brand building and overheads which give the business a more solid footing by not losing business on every order.”
The company is not focused on discounting its goods, but for the next 3-5 years, it will have to continue some discounting to stay in the game, Gupta said.
The online fashion store retails about 125 brands, and will bring ‘Forever 21’ to its stable in the next few months, “We don’t see any gaps in the range. If we add brands we will also delete brands, based on consumer insight,” Gupta added.
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