Group 1 –
Greeshma Tom Himanshu Khandelwal Naman Sharma Manish Hemnani
JABONG FAILURE ?
CASE STUDY
CONTENT
Jabong.com
2
Introduction
3
Jabong.com (2011) was an Indian fashion and lifestyle e-commerce portal founded by Praveen Sinha, Lakshmi Potluri, Arun Chandra Mohan
and Manu Kumar Jain. The company's headquarter was in Gurugram, NCR,
India.
Disclaimer - (German Origin) Operation’s starts in 2012
Jabong also had an international online shopping store called Jabongworld.com, which receives its highest amount of traffic from
the United States, closely followed by Malaysia and Mauritius among other countries.
Jabongworld.com was shut down in mid-2016.
Jabong.com
Company Size
4
| Fy 11-12 | FY 12-13 | FY 13-14 | FY 14-15 |
Revenue | 4 | 203 | 527 | 1083 |
PAT | -0.7 | -0.2 | -16.6 | -43.6 |
203
527
1083
-0.7
-0.2
-16.6
200
4
0
-43.6
-200
400
600
1000
800
1200
Cr.
Revenue
Investors History
Year | Round | Investor | Amount |
2011 | Seed | Rocket Internet & Kinnevik | $167.7 M |
2012 | Seed | HV Capital | - |
2014 | Venture | CDC Group | $ 27.5 M |
2016 | Venture | Global Fashion Group | $ 20 M |
5
Business Model
6
2
1
3
JABONG
Inventory
Warehouse business method
Logistic Operation
JaVAS, Express delivery, 30-Days return policy, Open-box Delivery
Controlled Market Place
Facilitator between buyer & seller
Customer
7
-Mainly from Tier -II cities
Analysis
Products
8
-More than 1000 brands
Analysis
Service
9
- Provided: a broad selection of products, superior buying experience, on-time delivery of products, quick resolution of any concern
- 6000 - 7000 orders shipped daily
Analysis
23%
20%
22%
18%
5%
6% 6%
Category
women's Apparel Men's Apparel
Accessories Kids
Women's Footwear Men's Footwear Others
2.19
3.2
0
0.5
1.5
1.18
1
2
2.5
3
3.5
H1-FY 13
H1-FY 14
H2-FY 13
Orders (m)
About Market
10
Going to examine how Jabong
entered in the Indian market.
Market Competitor
Jabong.com
Social-Economic Factors
FACTORS
ECONOMIC
Inflation
Recession
SOCIAL
Demography
Cultural
Norms
12
Jabong.com
Jabong.com
13
Market Position
12649
12425
11924
8447
8109
0
2000
4000
6000
8000
10000
12000
14000
13173
Myntra
Flipkart
Jabong
Amazon
SnapDeal
Home Shop 18
Unique Visitors [2013]
Media & PR
The company launched its first TV campaign in March 2012.Other television campaigns appeared in September 2012 and during
2013 Jabong.
14
Jabong.com launched the India Online Fashion Week in 2014
November 2013
Jabong.com
Effect Analysis
Failure Causes
16
2
1
3
JABONG
LEADERSHIP PROBLEMS
All CEO’s left in initial period
over the time
FUNDING CRUNCHES
Lack of major Investors
interest
NO SINGLE GOAL
New CEO’s - New Mindset
Jabong.com
Media & PR Reputation Damage
17
COPE UP
Decisions
18
Attracting New
Customers
Creating Loyalty Among Customers
For instance, the company offers 70% off on selected products and 30% off on new arrivals.
For instance, Jabong has a ‘Jabong First’ program under which customers can avail of exclusive benefits such as early access to sales, free
shipping, and exclusive deals .
For instance, the company offers a same-day delivery service in Delhi and NCR. Jabong also has a 24×7 customer support team to help its customers with any issues they may face.
30% -70% OFF
Jabong.com
JABONG First
Enhancing the Customer
Experience
24X7 Customer
Support
Is JABONG was a Failure ?
19
Jabong.com
RIGHT DECISION,
BUT WHEN ?
Loss making Company ?
ROCKET’s BUSINESS MODEL
20
Jabong.com
Truth About JABONG
21
Jabong.com
References :
22
Jabong.com
https://drive.google.com/drive/folders/1w9-5UMa5C_uIq0Cfk8i_B4Wj4eEJ9hbs?usp=share_link
Thank You Open To Questions
23
Jabong.com