Lingerie and innerwear brand Clovia aims to clock a 1.7 to 1.8 times growth in revenue by the end of FY23, Neha Kant, founder and chief revenue officer, Clovia, told Brandwagon Online. “Tier-2 and tier-3 towns account for 60% of our business. On average, there are about 900 cities that we cater to in India,” she added.
While the company reported a 67.6% increase in revenue to Rs 171 crore in FY22 from Rs 102 crore in FY21; its net loss widened 8x to Rs 52.2 crore from Rs 6.09 crore in FY21, as per regulatory filings accessed by business intelligence platform, Tofler.
Clovia, which started its operations about 11 years ago, became a subsidiary of Reliance Retail Ventures Limited (RRVL) and Reliance Industries
The company claims that bras account for 50-65% of sales, while its activewear category accounts for over 10% of revenue in addition to the nightwear category, which accounts for over 15% of the total revenue. “Our products are across more than 45 exclusive brand outlets. We plan to expand the number to 130 by the end of this March,” Kant highlighted.
Furthermore, the company plans to focus on expanding its offline presence in tier-2 and tier-3 towns. Currently, the offline channel accounts for 10-12% of the company’s revenue which it claims will cross 25% by the end of FY24. When asked about the company’s key markets, Kant stated that the largest markets are Bengaluru besides Delhi, Mumbai, Kolkata, Chennai and Hyderabad, apart from Patna, Ranchi, Surat, among others. “We sell a bra every two to 2.5 seconds in India,” she added.
As for customer acquisition, the company claims to be primarily focused on digital and content marketing. The overall marketing cost for the company dwells within the range of 12-15% of the revenue generated in a year. “Content marketing costs are around one-two percent but the impact is multifold,” Kant added.
The company claims to have recently expanded operations into the Middle Eastern and European markets. “We entered these markets online and they roughly account for million-dollar revenue in a year,” she highlighted.