Fashion e-commerce venture Stylista.com* has signed a four month deal with Jabong to sell their designer wears exclusively for four months. The company plans to start offering their products on Myntra and Flipkart later on, apart from launching its products offline in India, as well as internationally. Pricing on both portals (Stylista and Jabong) is the same, which means that Stylista takes a smaller margin on each sale on Jabong. However, it gets distribution, and a lower cost of sale. In addition, as per its CEO Avnish Chhabria, "The difference for us is that Jabong was willing to invest with us in marketing. They had gone out on a limb and committed to spend X amount for the next 4 months of marketing spend to help build the brand". But what does Jabong get from this deal? "What we are essentially giving Jabong is product differentiation." No customer loyalty in e-commerce: Chhabria feels that shopping online is being driven by customers who are bargain hunting, but they will not be getting into that. "Now if you look at Jabong, Myntra and Flipkart the reason all of them are surviving is because customers are bargain hunting. If Jabong gives 30% discount then Myntra will give you 35%. Online has become a bargain shop, and not about product, and we wanted it to be about product. We believe whatever we are offering, it is essentially a sale for the customer. A customer would never be able to try some of these designer wears for 3,000…
