Ajio is set to reach a milestone for Reliance Retail – Times of India

Ajio is set to reach a milestone for Reliance Retail - Times of India

Reliance Retailis online Fashion business, Ajio, is reportedly set to turn profitable this month. According to a report in the Economic Times Come on Will become the first Online venture Among the country’s largest retail groups to achieve the mark. The report cited two senior industry executives who are aware of the matter.
Ajio will post earnings before interest, tax, depreciation and amortization (Ebitda) of Rs 6-8 crore in December, the report added. Ajiv’s competition Mantra, Flipkart And Amazon In the online fashion space. Ajiv is posting annual sales of $2 billion in terms of gross trade value, with 51% of the business coming from the Reliance retail portfolio and the remaining 49% from its own and exclusive brands.
What is behind Ajiv’s profit?
As for the reasons behind the company achieving profitability, the report mentions several reasons. These include the premiumization trend in the market which has helped Reliance improve the average with a large international brand portfolio. Billing pricewhile it was brought down. Logistics cost By fulfilling and reducing most orders from physical stores near the delivery point Rate of returnthey said.

“Reliance wanted profitability in Ajio by this financial year and it is achieving it in December itself. The focus going forward will be on profitable growth as Reliance does not want to burn money when the business has achieved massive success,” ” said an executive. Publication
Reliance launched Ajio in the year 2017. Ajiv reduced marketing costs with five different storefronts for each customer segment. It created 4,000 stock points for last-mile fulfillment, including the nearest Reliance Retail store for delivery, which reduced logistics costs at the operational level. Also, the return rates came down from 35-36% to around 28%.
Ajio has announced plans to invest in 100 direct-to-customer (D2C) fashion startups through a new digital platform called AJIOGRAM. The company aims to ride 200 exclusive Indian fashion and lifestyle D2C.

Rate of return,Reliance Retail,Online venture,Mantra,Logistics cost,Flipkart,Fashion business,Billing price,Amazon,Come on

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