Jabong – The Biggest Bet of Rocket Internet
Jabong, the e-commerce portal which has captured the imagination of every Indian customer, offers a very large array of products with super-fast customer care services. The very essence of the success of Jabong can be guessed only by the behavioral implication it has on its customers, who advertise the website through word of mouth. Jabong.com is owned by the Gurgaon based Xerion retail private limited, which is backed by the German e-commerce giant Rocket Internet, the web investment company owned by the Samwer brothers. Rocket Internet has also invested in a number of other e-commerce portals such as the Citydeal.
When the Samwer brother’s thought of creating something as new as Jabong, they conglomerated many good attributes of other websites. The creators knew that the audience in India is well enticed with the discount offers and bargain deals. And as you can see till now, Jabong has been the biggest bet of the Rocket Internet in India. Offering jabong coupons to customers was a pre thought plan which worked out very well in their favor. People can find easily jabong coupon codes at coupon websites such as coupon lava, couponcabin etc. Also, one can subscribe to Jabong.com to receive timely notifications of hot deals and latest coupons.
Before Jabong there were many other online shopping sites in the Indian e-commerce scenario. Sites like Flipkart was leading the pack until Jabong came in. Flipkart was the Indian e-commerce’s favorite, with easy user interface and brilliant 48 hours delivery system. Flipkart surely did raise the bar for customer satisfaction in India. But, with the introduction of Jabong, it stretched out with aggressive marketing, wide array of products and same day delivery of products along with undoubtly a wide array of products and accessories.
Jabong went live in the month of October, 2011 and conquered the market within a period of just 6-8 months. No other e-commerce portal had ever achieved this before. Jabong rolled out a wide array of products for its customers; shoes, apparels, accessories, jewelry, sports equipments, home décor items in very less time. Apart from the services it launched, many of Jabong’s success lies on the aggressive marketing campaign and the supply chain management it endures. This helped in establishing a strong brand image of the company in very less time, where other e-businesses took around 3-4 years for the same.
Jabong believes in the method of “shock and awe”; this includes acquiring customers at any cost and surrounding them various benefits. This method has been used by the Samwer brother’s in many other e-commerce portals. Jabong wants to build a large e-commerce base very quickly even if it means splurging more on means to acquire customers and creating a sophisticated supply chain management. According to the sources, Rocket Internet has invested more than $40 million on Jabong.com. This is relatively less than its rivals, but the way Jabong is shooting up, it can be easily be seen that it has very high rate of returns. Rival portals like Flipkart were started with $100 million, another rival Snapdeal was raised through $60 millions. Compared to these figures, even though Jabong had less, it has shown that with aggressive and impressive marketing along with the right kind of products and supply chain systems, e-commerce portals can achieve great heights within small time.