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62% of Jabong’s revenues was from smaller towns in Q2-FY14


Around 62% of online fashion store Jabong‘s revenues came from Tier-2 and Tier-3 cities in Q2-FY14. This is probably due to lack of access to premium products in offline stores, especially in apparel category which tends to be available only in Tier 1 cities. (Read about Jabong’s financial performance here)

Jabong’s competitor Myntra had also recently mentioned that 45% of its revenues comes from these tier-2 and tier-3 cities and it expects this contribution to grow further in the future.

– Mobile transactions: This revenue growth from smaller cities is partly driven by the increase in mobile traffic and mobile transactions, considering these cities typically have low broadband penetration. Mobile transactions accounted for 27% of Jabong’s transactions in Q2 2014, up from 4.4% in Q1 2013. This is quite interesting considering Jabong didn’t even have a mobile app until April this year.

The monthly average visits from mobile devices has also shot up to 13.5 million in Q2 2014, from 1.8 million in Q1 2013.

Total Orders: Jabong has shipped 3.2 million orders (3,197,000) for the six month ended June 30, 2014, as compared to 1.18 million (1,181,000) for the six month ended June 30, 2013.

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Jabong orders

For the year ended December 2013, Jabong had shipped 3.37 million orders as compared to 1.14 million orders in the previous year. Note that this includes rejected & returned orders but doesn’t include cancelled orders.

Earlier in May this year, Jabong had reported that orders increased to 1.95 million for the quarter ended March 31, 2014, from 1.78 million in the previous quarter, and 0.72 million in Q1 2013.

– Private Labels: Jabong’s private labels currently account for 20% of its shipments. It has private labels like Lara Karen and Sangria.

Orders fulfilled: Around 93% of shipped orders under Jabong brand were successfully fulfilled in Q2 2014.

One day delivery: Jabong claims that around 70% of all orders placed in locations that offer same-day delivery are delivered within a day.

Dependency on JaVas: Around 72% of total deliveries were made using the third-party logistics service JaVAS while the remaining were made using state carriers. Remember that Jabong had sold JaVas to Gurgaon-based QuickDel Logistics sometime last year. JaVas claims to currently offer deliveries to more than 12,000 postal code areas in India.

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Gross merchandise volume: Jabong generated a gross merchandise volume of Rs 509.5 crore for the six month ended June 30, 2014, up nearly 3x from Rs 172.6 crore in the six month ended June 30, 2013.

For the year ended December 2013, Jabong generated a gross merchandise volume of Rs 511.4 crore, up from Rs 149.5 crore in the previous year.

Return customers: While Rocket Internet hasn’t disclosed the customer base on Jabong, it mentions that majority of purchase orders are placed by returning customers. Earlier in May this year, Jabong had mentioned that 51% of its customer base was return customers, although there was a dependency on new customers for increasing orders.

More charts on Jabong’s operational performance in Q1 2014 here.

Other Highlights

– FDI Limitations: Rocket Internet notes that due to India’s FDI regulations in E-commerce, Jabong’s own operations are limited to business-to-business transactions and it works together with an independent third party, which enters into contracts with, and delivers products to Indian customers under the Jabong brand. Note that e-commerce players like Flipkart and Koovs have a similar model.

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SKUs: Jabong claims to offer more than 139,000 SKUs and 1,600 brands across nine lifestyle categories on its online store.

Unique Visitors: Jabong claims to have 155 million visitors for the six month ended June 30, 2014, more than double of 73 million visitors in the six month ended June 30, 2013.

For the year ended December 2013, Jabong claims to have 180 million visitors, as compared to 70 million visitors in the previous year.

Website content production: Jabong has setup its own production infrastructure, that apparently allows them to create photos and website content for around 1,200 SKUs per day.

Also readEcommerce in India will go the Indic way soon – #NAMAindic

Corrigendum: An earlier version of the story had incorrect data on unique visitors. We’ve corrected it now. We apologize for the error.

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