Koovs sales surge continues, m-commerce is key
Fast-growing e-tailer Koovs may still have been lossmaking at its last set of results, but a trading update Wednesday showed that at this early stage in its development, its sales are soaring.
The company, which targets the Indian market with a business model similar to that of Asos or Boohoo.com, said it more than doubled sales and visitor traffic in the nine months to December 31.
First the numbers: sales rose to £13.45m from £6.69m a year ago even though the period included the Indian ‘demonetisation’ backdrop that seriously disrupted the economy.
Those sales were helped by“most successful designer collaboration to date” with Gauri & Nainika, a label that is a red-carpet favourite. The higher-end party dress collection debuted in November and sold out fast with 50% of the collection (over 1,000 units) shipped in three days.
Visits to the website were also on a roll with a rise to 57m from 28.6m, while registered users rose from 0.743m to 1.637m.
Importantly for a sector where smartphone transactions are a key sales driver, m-commerce transaction numbers rose 151% to 0.536m.
But the picture is not completely rosy with the company saying that “sales growth will be impacted by demonetisation.” However it added that there should be no overall effect on profitability targets for FY2017.
CEO Mary Turner said the brand is now established socially as “the favourite western fashion-forward brand in India.”
Despite targeting India, the business is listed and headquartered in London, where the majority of its design and buying team is based. All other operational functions are based in India.
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