2. Transcript
The Big Idea Jabong was founded in the year 2011, though they started operations in January
2012. When most of the e-commerce players were focusing on deals and discounts, they focused
on varieties, widest assortment, fastest delivery time and excellent customer services. This, over
time has led to the strong customer adoption over time. Their motto is “Delivering Lifestyle” but
more importantly aligned to customer expectations. Business Model Jabong.com follows both
inventory model and a controlled marketplace model. In inventory model, products are sourced
from brands and stored in the Jabong warehouse. In controlled marketplace model, Jabong doesn’t
store the inventory but takes care of the Fulfillment, Customer Service, and Returns if any.
Interestingly, Jabong (like any other Rocket Internet business) is built by consulting people, rather
than hard core operations professionals. Marketing Strategies Currently 90% of the company’s
budgets are going towards digital and rest 10% are invested in TV and OOH. Jabong is using
digital marketing to enhance the transactions and revenues and social media to increase
engagement. Off-line media are used to generate awareness in small towns and cities. In Jabong’s
digital strategy its Facebook page has recently crossed 1 million likes, and has 17K+ followers on
Twitter. They publish 6-7 updates a day and almost all of them are self-promotional but still are
able to engage the audience. Jabong has used the internet widely to promote its brand. However,
they launched its first TV campaign in March 2012.A similar campaign was launched in September
2012. In Feb 2013 Jabong launched a new TVC with tagline “Fashion Nikla Mann Fisla”. Their
association with Ranbir Kapoor and Deepika Padukone Bollywood Movie Yeh Jawani Hai Deewani
has given Jabong a strong uplift.