Fashion etailer Jabong joins common global marketplace
Indian online fashion retailer Jabong will join a consortium of four other fashion retailers from various continents across the globe to create a common market place and also a new global fashion e-commerce group.
Investment AB Kinnevik and Rocket Internet AG announced a definitive agreement to combine five leading fashion e-commerce businesses, namely Dafiti from Latin America, Jabong from India, Lamoda from Russia & CIS, Namshi from Middle East and Zalora from South East Asia & Australia to create a new global fashion e-commerce group (GFG).
The five companies valued according to their last funding rounds, resulted in a valuation of EUR 2.7 billion for the combined entity.
GFG will operate across the five continents with a focus on growth markets, covering 23 countries with a EUR 330 billion fashion market and population of over 2.5 billion people who continue to move rapidly online and purchase via ecommerce.
GFG will market a wide assortment of leading international apparel and accessories brands, a tailored selection of highly engaging internally developed brands and local assortments developed for specific ethnic markets notably in India, Indonesia and the Middle East.
GFG will maintain multiple business models including full inventory, branded shops and marketplaces tailored to the opportunities within the local markets.
In addition, GFG will continue to explore the development of adjacent categories like personal care. Mobile commerce will remain a core focus for GFG through the continued development of mobile applications aimed at the growing smartphone user base in its territories.
The five GFG companies combine a unique expertise of developing leading online brands, building the necessary infrastructure including where necessary last mile delivery networks, creating leading private label brands and delivering best-in-class mobile applications.
The combination will improve global best practice sharing across functions, deliver economies of scale in sourcing international brands and marketing with global media channels, strengthen the private label efforts, enhance GFG’s ability to attract and retain top talent, accelerate development of technology platforms, and enable GFG to acquire a leadership position in growth market fashion e-commerce.
As on June 30, 2014, the five etailers who make up GFG had 4.6 million active customers and over 7,000 employees between them.
For the first six months of 2014, GFG websites had 353 million unique visitors, received 8.4 million orders and generated EUR 436 million of Gross Merchandise Volume (GMV). In 2013, GFG’s IFRS revenues amounted to EUR 406 million.
With around EUR 350 million of cash, Rocket Internet said GFG is very well capitalised to continue to execute on its plans and capture its growth opportunities and all the directand indirect shareholders in the five existing e-commerce companies will contribute their shares into a newly formed Luxembourg-based entity. (AR)
Fibre2fashion News Desk - India