New Delhi: Online apparel retailer Jabong.com expects sales from small cities and towns to take over that from metros in the next five years on the back of increase in Internet penetration as well as young buyers.
“Internet penetration is increasing and young aspirational people from smaller parts of the country are buying online. We expect sales from hinterlands to grow as well,” Jabong.com CEO & founder Arun Chandra Mohan told PTI.
The city-based firm, which is clocking about half of its sales from metros, expects the share of tier-II and -III cities to grow faster and surpass big cities in the next 4-5 years.
“It has dramatically increased. Two years back, I had not expected these kind of numbers,” he said.
On growth, he said the portal’s revenue is registering double-digit growth every month. Jabong.com had gross merchandise volume of about USD 23 million in December, 2013.
“We are growing with the market and soon bypass the brick and mortar set up. We are bullish about it,” he said adding that still there is a huge potential in the apparel segment given the demand and supply mismatch.
The company now sells products from about 1,000 brands compared to 700 brands last year. It retails brands like Adidas, Puma, Levi’s, Converse, Proline, Nike etc. It has also introduced apparels from leading fashion designers also.
The portal recently raised equity of around USD 100 million, including USD 27.5 million from British development finance institution CDC.
Jabong.com has also brought British label Dorothy Perkins to India, which would be unveiled at the Lakme Fashion Week 2014 in Mumbai this month.