Fashion e-tailer Jabong which was acquired by rival Myntra last year will be shutting down one of the combined five warehouses both the companies currently own as the two try to consolidate supply chain and reduce costs.
The company targets to grow its revenue by 30 percent during the end of the financial year as compared to the previous fiscal.
“We are looking to grow by about 30 percent in this financial year which technically will become like a 50 percent growth because Jabong de-grew in the years before. The way we want to grow is actually on the back of nurturing our loyal consumer base but at the same time also attracting new consumers to resonate with the same fashion shopping experience,” Gunjan Soni, head of Jabong stated in an interaction.
On the issue of consolidation in logistics, Soni said warehouse space across India will be used by both Myntra and Jabong together, which was not the case earlier. Both Myntra and Jabong are fashion portals under Flipkart.
Moreover, Jabong will soon start depending upon Myntra’s logistics unit for its deliveries besides Flipkart’s eKart and other third party logistics firms.
Soni also claims that Myntra Logistics will be cheaper for Jabong, as compared to the third party logistics provider. She did not share specifics of the costs.