Most of the merchandising startups have been confused about whether to build a destination or go big on distribution. For instance, Bluegape recently shutdown because they were blocked by distribution partners, due to copyright issue.
Bewakoof, the quirky brand store has switched to online-only-destination model and the company has raised funding from Snapdeal founders, Kunal Bahl and Rohit Bansal.
As far as traction is concerned, Bewakoof is doing INR 1.5cr per moth through its own portal and this constitutes 100% of the sales.
We have grown 3x in the past 6 months and more than 50% of our sales come from mobile.
Cofounder, Prabhkiran Singh shares:
We switched because this is where the future is. India will skip the organized retail revolution and the online retail will emerge to be a bigger market. We believe that 30-40 big online fashion brands with $100M+ revenue will be created online. The strongest of brands will become destinations for the consumers and the others will depend on marketplaces for their distribution. Bewakoof is a really strong brand and can stand on its own, becoming a destination for quirky fashion.
The reason we sell on our own portal only is because we are building a fast fashion brand so that we can offer in-trend fashion to consumers with huge variety and new collections frequently. When you are building fast-fashion, the total product-to-market cycle is a key parameter. Bewakoof holds only 20 days of inventory for the sales we do, which is 3-4 times lesser than the other online players and 6-7 times lesser that the retail industry. Selling through third party slows the process, increasing the inventory level and also causing a delay in providing in-trend fashion. As a result, fast fashion can never be built in horizontal play.
Along with Snapdeal Founders, Nikhil Vora – Former IDFC Securities Managing Director and co-Head of Research has also invested in personal capacity. Nikhil also runs a consumer-centric fund named Sixth Sense Ventures.
Here is wishing them more bewakoofiyan!