YepMe plans to open 400 offline stores this fiscal year to bump up salesNews Desk
In order to ramp up its sales, fashion e-tailer YepMe is looking to set up 400 stores by the end of this financial year, according to The Economic Times.
Speaking to the publication, Vivek Gaur, CEO, YepMe said that the four outlets in Gurgaon earn more than five times in sales for the e-tailer than what it earns from online sales in the city. Hence, according to Vivek, the company has figured that offline sales acts as a multiplier to online sales, helping them to sell profitably.
The company is looking to own and operate the stores in metros, while letting the stores in Tier II townships be franchise-owned, the report stated.
Just last September, the company reportedly raised $75 million from investors, led by Malaysian state fund Khazanah Nasional Berhad and existing investor Helion Advisors participating in the round. The company also reported a loss of Rs 40 crore last fiscal. However, it is expecting to hit Rs 280 crore in revenues this year.
Setting up offline stores seems to be the next logical route for expansion for online portals. With the Indian retail market expected to cross $1 trillion by 2020, there is enough space for each format to grow and thrive. Further, there are also other e-commerce players that have expanded to offline stores in the past.
This month, fashion e-commerce player Myntra announced that it would open its first offline store, in Bengaluru or New Delhi, in the next three months, as it gears up to reach $1 billion in sales and profitability next year.
These flurry of announcements come at a time when fashion e-commerce has been making news in the country, with Flipkart subsidiary Myntra acquiring competitor Jabong for $70 million. Flipkart is said to have beaten multiple contenders including Aditya Birla Group (which owns ABOF fashion portal) and Snapdeal.