E-commerce platform ShopClues said it has seen strong uptake of its private label business and expects its four brands to account for about 12 per cent of total revenue this fiscal.
According to a PTI report: ShopClues had launched Home Berry, its home decor exclusive label in July last year, followed by women’s fashionwear brand Meia in September. It also operates Baton (men footwear) and Digimate (electronics accessories) brands.
“In 2017, we launched four exclusive labels… Despite being at a nascent stage and in a short span of time, we have seen our exclusive labels grow significantly and contributing about 10 per cent to the orders,” Ritika Taneja, Senior Director, ShopClues was quoted by PTI as saying.
She said the exclusive labels business is expected to account for about 12 per cent of the revenue for the fiscal but declined to comment on the targets.
As per regulatory documents filed with the Corporate Affairs Ministry, ShopClues’ total revenue from operations grew 11.7 per cent to Rs 180.3 crore in 2016-17, from Rs 161.4 crore in the preceding fiscal.
The company also narrowed its losses to Rs 332.65 crore for the year ended March 2017 compared to the previous fiscal, the documents showed.
E-commerce companies focus on private labels because they offer higher margins and enable better control of inventory. Larger rivals Flipkart and Amazon have also launched their private labels to boost business across various categories.
“Currently, we have over 3,500 products across our exclusive labels, the maximum being in lifestyle (Meia and Baton combined). We aim to further increase the width and depth of our collection,” Taneja told PTI.
She said the growth rate across the exclusive labels is between 10-15 per cent overall but the growth in Lifestyle has been faster and higher at about 22-25 per cent.
“We have seen great demand from across regions. Tier II and beyond have been strong growth drivers. Cities like Rajkot, Jaipur, Agra, Pune, Gorakhpur, Guntur, Mysore, Hubli, Gwalior, Panipat etc have been contributed significantly to the demand,” she was further quoted by PTI as saying.
Founded in 2011, ShopClues has over six lakh merchants. With over 28 million listed products, it gets more than 72 million monthly visits on its platform.