“Beds, sofas and dining furniture are our core products from range, pricing and value proposition perspectives. However, only 40-50 per cent of our sales comes from these three core products, whereas, for many of our competitors that percentage is closer to 60-70 per cent. Since these core categories are higher-ticket items, having more of an offline presence would have helped us sell more. Also, we now know what gaps need to be filled from the selection and pricing perspective.”
The long trek towards profitability
Urban Ladder has said that it intends toturn profitable by 2018. The company has moved to asingle brand modelfrom a marketplace, opened astore in Amazon, had abrand refresh, and reduced its expenses bycutting down ads.
It has been plagued byincreasing lossesdue to rising costs, for which it has taken suitable steps.Srivastava says,
“The last 12 months was spent removing all inefficiencies from the system – we froze recruitment and back-filled voluntary exits from our internal team, cut down on wasteful spend by stopping TV ads since last February, and drastically reduced our product range.”
He claims that the hard work has paid off, and the company is setting its sights on the next milestone,
“We are now looking to achieve 60 per cent YoY growth on the back of the savings that we achieved last year.”
Physical stores a common thread
Most etailers are realising that having a physical presence will help their brand.Amazonhadset the ball rolling. In the recent past, YepmeandMyntrahave launched their physical stores, pushingFlipkarttoconsider storesof its own. Others like Zivame and PepperFry had alsoestablished their physical presence.
Hybrid retailing is a healthy balance between etail and retail. Ecommerce is slowly warming to the prospects of a combination to ensure a good growth.