Aditya Birla Group’s fashion e-commerce platform Abof.com (Aditya Birla Online Fashion) will be shutting shop by the end of this year, reports ETtech. Apparently, the company has informed its employees that December 31, 2017 will be the last day of operations, following which all 240 employees will be given the option of accepting four-and-half months’ salary as a severance package and quit or continue being a part of Aditya Birla Group in some other department.
The director of human resources at Aditya Birla, Santrupt Misra confirmed this to the publication and said that since even the major players in the e-commerce space in India are struggling to make any money it is time to accept that not everything is hunky dory with the segment, and hence this decision from Aditya Birla.
We’ve written to Abof.com to learn more about why they decided to shut shop, and to find out if this is a temporary pause or not. We will update once we hear back from them.
Abof.com was launched in October 2015. It lists clothing and accessories for men and women, both from Aditya Birla’s brands as well as curated clothing from other brands. About a year later, in September last year, Amazon had added Abof.com as a seller on its marketplace. It’s worth noting that Aditya Birla had earlier launched another e-commerce platform called TrendIN.com in 2013, for its in-house brands such as Louis Philippe, Allen Solly, Pantaloons, People, Peter England, Planet Fashion and Van Heusen. However, this platform was later shutdown and separate online platforms for individual brands were started. The TrendIN.com site is still accessible, but it just provides links to these individual brand platforms.
Other major textile companies with online presence
- In May 2016, Arvind Internet, the e-commerce arm of textile company Arvind Ltd, said it plans to invest $10 million in its newly launched omni-channel venture NNNow.com, which it had launched earlier in the month. Arvind Internet also owns customised clothing e-commerce platform Creyate.com, which was launched in August 2014.
- In April last year, Mukesh Ambani owned Reliance Industries launched its fashion e-commerce portal called Ajio.com under its Jio brand. Reliance Retail also retails multiple brands in speciality stores, and also runs online stores for them.
- In October 2014, Raymond Limited has launched its official online store RaymondNext.com, one-stop e-commerce platform for all Raymond brands and services.