Online lingerie brand Zivame reported more than 84% rise in its net losses at Rs 54 crore during FY16, according to company's filing with the registrar of companies.
Online lingerie brand Zivame reported more than 84% rise in its net losses at Rs 54 crore during FY16, according to company’s filing with the registrar of companies. Actoserba Active Wholesale, the promoter company reported a 38% growth in its net sales at R62.6 crore during the period. The company’s revenues are the commission it gets from from retailers on sales.
In 2011, Zivame started as a marketplace and aggregator of different brands such as Jockey and Enamor. Later, like other fashion portals such as Myntra, YepMe, Craftsvilla, and FabAlley; it decided to also venture into private labels in search of better margins and product quality control. The company has three private labels— Penny, Cou Cou and Rosaline under its name.
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Total expenses of the company jumped 57% to R118.8 crore from R75.5 crore due to investment in its private label and product design. Inventory cost of the company grew 35% to R47.8 crore and advertising and marketing expenses increased to R46.7 crore from R22.8 crore in the previous year, according to the filing. In the current fiscal, Zivame will be expanding its presence in the offline retail market via franchisee model. By FY17, the company plans to open 40-50 brick-and-mortar stores. The omni-channel strategy of the company will look at setting up experience studios across India to educate women and help them build their lingerie wardrobe.