Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,930.70-37.7
Stock Analysis, IPO, Mutual Funds, Bonds & More

With new leadership, Zivame seeks a right fit to profitability

In fiscal 2015-16, Zivame registered an 84% increase in losses to Rs 54 crore on revenue of Rs 62 crore, according to filings with the Registrar of Companies. It had an inventory of Rs 40 crore.

, ET Bureau|
Updated: Jan 31, 2017, 08.55 AM IST
0Comments
"Our cost of customer acquisition will come down due to multiple channels and we will also revive marketing through TV commercials over the next month," he said.
"Our cost of customer acquisition will come down due to multiple channels and we will also revive marketing through TV commercials over the next month," he said.
BENGALURU: Online lingerie retailer Zivame, emerging from an investor-led leadership change, aims to become profitable in the first quarter of fiscal 2018-19, expecting a boost from its ambitious plan to open at least three dozen stores across the country.

Zivame's strategy to sell its brands both online and in brick-and-mortar stores will be key to achieving profitability, said chief operating officer Shaleen Sinha, who took over charge of day-to-day operations from chief executive Richa Kar this month.

"We want to be a women's wear brand and will launch new categories like active wear and others over the coming months. We will be breaking even by June 2018," he said.

Sinha added that the company's decision last year to transform from an online marketplace to an online brand will help it reduce cash burn by 60-70% over the next 18 months. "Our cost of customer acquisition will come down due to multiple channels and we will also revive marketing through TV commercials over the next month," he said.

In 2015-16, Zivame registered an 84% increase in losses to Rs 54 crore on revenue of Rs 62 crore, according to filings with the Registrar of Companies. It had an inventory of Rs 40 crore.

After raising Rs 250 crore from Zodius Technology Fund and Khazanah Nasional Berhad in 2015, Zivame, which used to sell other brands as well as its own online, liquidated most of its inventory, pivoted to retailing only its own labels and decided to sell offline as well through company-owned and franchisee run stores. Private label brands make for high-margin businesses due to better control over the supply chain. Online marketplaces Flipkart and Amazon India, too, have introduced their own clothing, small appliances and electronics brands.

Also Read

Lingerie brand Zivame plans $50 million fundraise, eyes $200 million valuation

Zivame’s omnichannel play starts to pay off for firm

Zodius Capital ups stake in Zivame, buys out Kalaari and IDG shares

Zivame sees turnaround with Rs 40 crore offline push

Zivame too pitches for single-brand retail licence

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service