By: Madhu Manjari, Ridhi Prakash, Simran Jaiswal

• An Indian Fashion and lifestyle e-commerce portal .

• It was a German investment firm that starts companies all over the world.

• It also consisted of the founding team of three entrepreneurs Lakshmi Potluri,

Arun Chandra Mohan and Praveen Sinha.

• The portal sells appreal, footwear, fashion accessories, beauty products,

fragrances, home accessories and other fashion and lifestyle products.

• The e-store carried over 1000 brands and over 90,000 products. Other products
include jewellery and gold coins.

• It also had an international online shopping store called Jabongworld.com.

 Business Model

• Jabong.com follows both an inventory model and a managed market

place model.

• In the inventory model, products are soured from brands and stored
in Jabong warehouse.

• In the managed marketplace model, Jabong provides marketing,

logistics and delivery.
 How Jabong rode a rocket but landed in flipkart and Myntra’s arms?

• Jabong is from the Rocket internet group.

Its German investment firm that starts
companies all over the world.

• Since it was founded by an investment firm, they

had huge investment from day1, and Rocket group had
assembled(employed) a team of good e-commerce
executives.

• Jabong had entered with a swagger – spending foreign

dollars on big-ticket ads and discounts.

• Within the two years of launch Jabong was dominating

the market and never consider Myntra as there competitor.

• Jabong's revenue grew from around Rs 4 crore in FY 2011-12

to Rs 527 crore in FY 2013 -14, while Bangalore-based Myntra’s
revenue grew from around Rs 65 crore in FY 2011-12 to Rs 552
crore in FY 2013-14.
 The Hard Fall
• Heavy discounts were blamed.

• January and June 2015 , Jabong’s losses

were to the tune of Rs 227.4 crore.

• The net revenue for the first six months of

2015 grew only 26% .

• Started facing troubles globally in form of

stock crashes and trouble with shareholders.

• Founding team members Manu Jain and

Lakshmi Potluri, left the company in the
early years.

• After their departure rumours surfaced about

corporate governance issues.

• Jabong started selling of there brands like

FabFurnish to Future Group.
 Original Strategies Of Rocket

The foundation of Jabong was based on 3 pillars

• Rocket's true strength lies in execution.

• Successfully clone existing lifestyle businesses already present.

• Make it grow faster than other companies by creating a larger rage of

product offerings.

• Lower the pricing to undercut the competition.

• In the online space and then sell at right time.

 There is no room for doubt that Jabong had a strong brand value and had good
customer base in India.
• 2015– Hits record sales, but profits continue to elude – Jabong raked in Rs.
1083 crores in revenue, but its losses grew proportionately.
• On 2017 acquired by Myntra.
• Though the Rocket team has assisted numerous successful Internet companies, in
the recent years its name has been part of extremely negative talks, as their
approach has been criticized by many.
 Suggestion of New Business Strategy

The Revival of Jabong is based on the 3 horizons of the business strategy :

Strategic Choices to Action:

Which strategies are acceptable, suitable and feasible?
• To assort and identify the target group of customers.
• To reduce the dept the of product range and increase quality.
• To stop stocking products and tie up with vendors.
• Discounts only on appreciable seasons only.
To Build Emerging Business:
How should the organization compete with?
• The failure has happened previously due to underestimating the competitors like
Myntra.
• The brand needs to analyse their competitors on basis of all their utilities.
• The brand needs to take all sorts of beginners on their core field as a threat.
• The brands needs to understand its competitors strata and new offerings for
operate better.
• The brand needs to concentrate more on the invested money as to earn the profit
back, rather keep deploying investments again and again.

The organization’s competition with its own development:

• Jabong has an internal collapse due to wages and incentives, which has to be
regulated as per the employee ranking .
• The brand needs to regulate and estimate the course period of working of each
employee from top to bottom.
To create variable options:
• The brands needs to make sure the selling products lines are displayed on
customers preference.
• As the brand is e-commerce based, the brand can execute variable customer
satisfying options such as:
 Fast Delivery
 Delivery within a couple of days
 Ensuring the packaging
 AI innovations to the app
 Easy customer care access
 100% money cash back with return
 Executing gift cards as per promise
 Good track on customers orders
 Updating new launches on time
 Features in to be maintained in good way
 Suggestion for various Government Schemes
Application
 The Draft E commerce policy:
1. Among key guidelines, the e-commerce companies will also be required
to ensure that personally identifiable information of customers are
protected.
2. Introducing FDI in inventory-based model.
3. E-commerce companies should not directly or indirectly influence the
price of the goods or services and “maintain a level playing field.”
4. The companies should not adopt any unfair methods.

 Digital India initiatives:

1. Electronic Development Fund
– Yournest India VC Fund
– Ventureast Proactive Fund II
2. BHIM

 Revival and Rehabilitation of sick units( The Companies Act 1956)

1. Sick Industrial Companies Act (SICA)
 Conclusion

• In long run , supports the Make in India initiative.

• Build a viable business rather than just depending on discounts.

• Creates level playing field for India companies.

• If Jabong at right time could have opened its mind to different government
schemes and fund to invest in its R & D and innovative ideas that could rise
them from their competitors then it could have revived from its downfall.

• Protected customer data promotion would have made customer feel safer to
use their site and also promote digital payments as BHIM is the
government payment app which would have been trusted my all generation
of public.
Reference:

• https://browntape.com/performance-by-jabong-over-the-years-loss-making-enterprise-
or-money-spinner/ ( Viewed on 15 Dec 2019 – 10.10 pm)
• http://www.businessworld.in/article/The-Inside-Story-Jabong-s-Discount-Deal-And-
Failure-Of-Rocket-Internet-Ventures/03-08-2016-103999/ ( Viewed on 15 Dec 2019 –
11.05 am)
• https://yourstory.com/2016/07/jabong-myntra-flipkart?utm_pageloadtype=scroll (
Viewed on 15 Dec 2019 – 10.10 pm)
• https://yourstory.com/2016/07/jabong-myntra-flipkart?utm_pageloadtype=scroll (
Viewed on 15 Dec 2019 – 10.10 pm)
• Draft National e-Commerce Policy: https://dipp.gov.in ( Viewed on 15 Dec 2019 –12.10
pm)
• https://www.thehindubusinessline.com/info-tech/govt-unveils-draft-e-commerce-
norms/article28826848.ece ( Viewed on 15 Dec 2019 –11.30 am)
• https://economictimes.indiatimes.com/news/economy/policy/government-to-come-out-
with-national-e-commerce-policy-within-12-
months/articleshow/69942932.cms?from=mdr
• https://meity.gov.in/esdm/edf( Viewed on 16 Dec 2019 –12.13 am)