Jabong Case Study
Jabong.com is one of the fashion and lifestyle e-commerce portal in India, selling apparel, footwear, fashion accessories, beauty products, fragrances, home accessories and other fashion and lifestyle products. The company is headquartered in Gurgaon. (Anon., 2015) It is owned by Rocket Internet Group and co-founded by Arun Chandra Mohan, Lakshmi Potluri and Praveen Sinha and a team of cofounding members known as EIRs (Entrepreneur in Residence). Though Jabong.com was founded in the year 2011, the operations started in January 2012. (Jain, 2015) Tag line of Jabong.com is ‘Be You’ Within a year of their launch, they were shipping 6000 to 7000 orders a day. Jabong.com was one of the most visited sites during the festive seasons. Company representatives
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The first TV campaign was launched in March 2012. In February 2013 they launched a new TV campaign with the Tagline ‘Fashion Nikla Mann Fisla’. Cash on delivery system was introduced to get more clients. Currently 90% of the company’s budgets are going towards digital and 10% towards Television and OOH (Out of Home advertising). Offline media is used to generate awareness in small towns and cities. They are focused towards attracting female shoppers than men. In May 2013, Jabong presented a fashion collection based on Bollywood movies. In July 2013 they were inspired by a Bollywood movie and offered a collection of clothing based on it. Jabong has partnered with Lakme Fashion Week and with designer Rohit Bal for an exclusive collection. In November 2013 Jabong along with Puma launched the digital fitness campaign ‘‘Gear up Buddy’’. In May 2014 NBA and Jabong partnered to launch the first official NBA online store in India. In 2014 Jabong launched India Online Fashion Week. It created a platform for young and aspiring designers, stylists, models and photographers. In the same year they launched a monthly fashion magazine ‘The Juice’. It covers stories and features around fashion, beauty, people, trends, travel and pop culture. (Vassudev, …show more content…
In India, most of the people would still prefer to go and do shopping, than purchasing it online. (Desai, 2013)
Product retailers have strong network of distribution. (V, 2015)
PEST Analysis (Dey, 2013)
PEST means the Political, Economical, Social and the Technological factors of a business.
Political
• Government support for increasing internet penetration in India.
• Tax benefits to corporates.
• Increase in stock holding % for foreign investors in companies.
• Resistance against foreign investors.
Economical
• Booming Indian economy.
• Increasing the spending power.
• Usage of internet has multiplied by 10 to 11 times in the last 6yrs.
• Increase in fuel prices in India.
Social
• Trust in online shopping.
• Comfort level in buying online has increased.
• Convenient and time saving.
• Computer literacy has increased and also the broadband usage.
Technological
• Shopping using mobile apps.
• Better usage of e-commerce sites for privacy and advancements in net banking.
• Simplicity and technological advancement gives a loyalty in customers mind.
• Better promotional system
Porter’s Five Forces Model (Gupta, 2013)
Bargaining Power-
The first TV campaign was launched in March 2012. In February 2013 they launched a new TV campaign with the Tagline ‘Fashion Nikla Mann Fisla’. Cash on delivery system was introduced to get more clients. Currently 90% of the company’s budgets are going towards digital and 10% towards Television and OOH (Out of Home advertising). Offline media is used to generate awareness in small towns and cities. They are focused towards attracting female shoppers than men. In May 2013, Jabong presented a fashion collection based on Bollywood movies. In July 2013 they were inspired by a Bollywood movie and offered a collection of clothing based on it. Jabong has partnered with Lakme Fashion Week and with designer Rohit Bal for an exclusive collection. In November 2013 Jabong along with Puma launched the digital fitness campaign ‘‘Gear up Buddy’’. In May 2014 NBA and Jabong partnered to launch the first official NBA online store in India. In 2014 Jabong launched India Online Fashion Week. It created a platform for young and aspiring designers, stylists, models and photographers. In the same year they launched a monthly fashion magazine ‘The Juice’. It covers stories and features around fashion, beauty, people, trends, travel and pop culture. (Vassudev, …show more content…
In India, most of the people would still prefer to go and do shopping, than purchasing it online. (Desai, 2013)
Product retailers have strong network of distribution. (V, 2015)
PEST Analysis (Dey, 2013)
PEST means the Political, Economical, Social and the Technological factors of a business.
Political
• Government support for increasing internet penetration in India.
• Tax benefits to corporates.
• Increase in stock holding % for foreign investors in companies.
• Resistance against foreign investors.
Economical
• Booming Indian economy.
• Increasing the spending power.
• Usage of internet has multiplied by 10 to 11 times in the last 6yrs.
• Increase in fuel prices in India.
Social
• Trust in online shopping.
• Comfort level in buying online has increased.
• Convenient and time saving.
• Computer literacy has increased and also the broadband usage.
Technological
• Shopping using mobile apps.
• Better usage of e-commerce sites for privacy and advancements in net banking.
• Simplicity and technological advancement gives a loyalty in customers mind.
• Better promotional system
Porter’s Five Forces Model (Gupta, 2013)
Bargaining Power-