E Commerce Jabong

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JABONG

Be you
.com
ABOUT THE COMPANY
Jabong.com is an Indian fashion and lifestyle e-commerce portal owned by rocket
internet from germany and founded by Praveen Sinha, Lakshmi Potluri, Arun
Chandra Mohan and Manu Kumar Jain.
The company is headquartered in Gurgaon, NCR
The site started operations in january 2012.
It was one of the most visited e-commerce sites during The Great Online Shopping
Festival 2013.
The e-store at present carries over 1000 brands and over 90,000 products. Other
products include jewellery and gold coins.
Employee count is 500-1000.
PRODUCTS OFFERED

COSMETICS HOME
FURNISHINGS
CLOTHING

SHOES ACCESSORIES
& BAGS
At jabong.com, they strive to achieve the highest level of “customer
satisfaction” possible. Their cutting edge E-commerce platform, highly
experienced buying team, agile warehouse systems and state of the art
customer care center provides customer with:

● Broader selection of products


● Superior buying experience
● On-time delivery of products
● Quick resolution of any concerns
BUSINESS MODEL OF JABONG

Jabong , backed by Berlin-based Rocket Internet GmBH, has a success formula of:
Add as many categories as possible; acquire customers at any cost; build a
logistics arm from ground up and delight the customer.
Jabong operates on:
Inventory model-products are sourced directly from brands and stored in
warehouse.Offers super fast delivery.
Managed marketplace model-acts as an online supermarket for all the products
sold by all partners but doesn’t store any inventory.
Inventory model still remains the most prominent model for jabong, but they are
also focusing heavily on the marketplace model to bring capital efficiency and
sustain profitability. This however does present issues at times with respect to
customer satisfaction, as products ordered through partner vendors may take
longer to deliver thereby denting the USP of jabong which is speedy delivery.

Jabong’s logistic operations launched jaVAS as a separate service independent of


jabong. JaVAS covers around 50-55 cities and a majority of its customers are e-
commerce firms. Vision is to be the one stop shop for fashion and lifestyle needs of
indian consumers. They are constantly adding more international and national
brands to their catalogue.
SWOT ANALYSIS OF COMPANY
STRENGTHS- OPPORTUNITIES-

● strong investor backing ● Youthful potential in India with


● fastest delivery discretionary spending
● Widest assortment of products with 750 ● India has the fastest internet traffic growth
brands globally.
● Innovative services, introduced card
processing on delivery

WEAKNESSES- THREATS-

● Available infrastructure is still inadequate ● Other online players like koovs, ajio and
● Lack of common taxation rules zovi are strong competitors looking to
● The consumer mindset is still towards the expand into apparel market.
touch and feel system. ● Product retailers having strong distribution
network.
iZOOTO
Jabong was looking to build a marketing list that could perform consistently as it scaled up. With a decline
in email open rates, they were looking for a solution that could ensure more reach and engagement,
effectively increasing conversions. With iZooto, Jabong was not only able to solve the problem of click
throughs but also saw a 80% more conversion rate than paid campaigns.

CHALLENGE: Jabong’s marketing stack leverages multiple communication channels including Email, SMS,
Display ads and on page alerts to engage customers. The challenge, however, was to build a marketing list
that performs consistently as it scales. Response rates across these communication channels started to
either flatten or decline. Ad Blockers and banner blindness had already impacted the efficacy of display ads
and email open rates reduced further and were in a single digit!

SOLUTION: The decision-making process was simple - As an HTTP website, Jabong was looking for a
solution that helped them leverage their brand name. Using iZooto’s custom domain option, they were able
to kickstart the implementation really quickly. Given Jabong’s traffic, Jabong’s push notification subscriber
list quickly scaled past 100K. As the subscriber list scaled up, CRM team continuously experimented with
web push notifications - to drive user engagement, especially for activating dormant users.
Timely trigger cracked the flagship sale
Jabong’s flagship sale- End of Reason Sale (EORS) is a 3-Day fashion
fiesta that attracts millions of visitors. EORS is packed with deals that
are rolled out by the hour and last for a specified duration only.

Using the notification expiry feature, Jabong set up timely alerts to


drive more traction leveraging on the impulsive behavior of a user.
And with banner images coming into effect, the CTR for every
campaign started shooting up as it helped trigger the right emotions.
Personalisation boosts engagement and CTRs
Being a fashion and lifestyle destination, CRM team understood the
importance of how each user needs to be treated uniquely.
Personalization sits at the core of user communication at Jabong and
iZooto helped them with precisely that.

In a step by step fashion, the iZooto team helped them segment their
subscribers basis their shopping behavior, shopping preferences and
more. The impact was immediate and significant. Notification sent to
target audience segments saw a 2X impact in Click Through Rates with
the highest being ~ 15.4%
NETWORK EFFECT
Jabong.com gets better the more people use it because it gives it more data about
what people search for and how, which helps them refine their algorithm , whom to
segment and target becomes easier.
It also benefits from economies of scale like any other retailer: their size allows
them to get better prices from suppliers and operate more efficiently, which allows
them to pass on savings to consumers.
If more users sign up for Jabong then a healthy community can take shape. Also ,
the review system grows where a user of a particular brand or product will help the
others buy it by writing a review.
Their affiliates program lets websites refer their readers to them to buy apparel.
This arrangement makes them money, and the blogger gets a commission. The
more popular a site with more unique visitors , the more will websites want to
affiliate with that program
METHODS OF PAYMENTS

Jabong accepts payments via

● Visa
● Mastercard
● Net banking
● Cash on delivery
SERVICES OFFERED
1. Track order via SMS

To know your order status, SMS OS(space)(last five digits of your order
number) to 994993333. Example: OS 12345

2. Order cancellation via SMS

To cancel your order, SMS CAN xxxxx at 962222133.

3. Customer Care

Want to know about order status or queries related to a product give a call or drop
a line at 0124-6128000 or email them as [email protected]
3. Complaint

If you are not happy with the services we can call the customer care number and
ask for a complaint to be raised. Jabong’s complaint handling champs would attend
to your issue straightaway.

If your concern still remains unresolved, we can email to the head executive.
ADDITIONAL BENEFITS
OFFERS FOR ATTRACTING CUSTOMERS
PRODUCT QUALITY RANKING
SERVICE RANKING
COMPANY’S SUCCESS FACTORS

While the focus of the leading online portals was to offer customers lowest prices in
the form of deals and discounts, Jabong’s driving factor was to deliver a wide range
of products within the shortest time frame possible, at prices that are within the
reach of the common man.

Jabong’s successful penetration in the indian e-tail market is helped by various


partnerships. Because of its success, Nike partnered with Jabong.

● Jabong.com won the “online retailer of the Year” award in the first eTailing
India e-commerce industry awards.
● Jabong.com received the award for the “Most impactful Launch of the year” at
Pitch Brands 50 awards 2013.
COMPANY’S MARKETING STRATEGY

● The company’s main source of promotion has been the internet.


● The company launched its first TV campaign in March 2012.
● In a bid to position itself as an online fashion destination, Jabong has
partnered with LAkme Fashion Week for next four seasons and with designer
Rohit Bal for an exclusive collection
● Jabong is using digital marketing to enhance the transactions and revenues
and social media to increase engagement.
● They are also focused towards attracting female shoppers more than men
FUTURE PROSPECTS OF JABONG
India’s apparel market rapid growing in e-commerce, India and rising urbanization
have spawned a new class of consumers with more money to spend, and a
growing passion for fashion. Apparel has become the fastest growing segment in
the country’s online retail section, we see significant new growth opportunities for
foreign and domestic players.
In a report by IAMAI found that Online retailing by Branded Apparel has witnessed
a year on year growth of 84%, this indicates rising consumer preference for
shopping online in a category like apparel which is largely dominated by Touch and
Feel experience.
The very recent survey on the shopping trends in India, clothing has the highest
demand in online shopping. The survey report states that a garment is sold every
40 seconds in the country.
As the lifestyles of India’s prospering urban consumers have evolved, their clothing
needs have broadened, reflecting more varied usage occasions. Now, the
customers have gradually developed a comfort level in buying clothes online and
with the functional reason of limited availability of these brands leads to a sparked
demand for them.
Eased payment options like Cash on Delivery (COD) and EMI are also contributing
to the growth of the apparel e-commerce in India.
As more and more shoppers are getting comfortable with online shopping, apparel
is set to become the fastest growing category (overtaking electronics) in the online
shopping space
Therefore, the future for apparel e-tailing is on a high growth trajectory, though the
path is laden with challenges like infrastructure and consumer mind-set , change in
policies and higher youth discretionary spending seem to be working for the online
apparel sellers.
THANK YOU...

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