Indian etailer Koovs increased sales by 87% to £18.6m for the year ending 31 March, while units shipped and repeat customers grew 100% compared to the previous year.
The firm said its proactive approach to demonetisation in India, in terms of the customer payment and delivery options provided, coupled with a strong Christmas trading period, helped it to outperform the Indian ecommerce market by five times. The firm offered options including doorstep conversion to card and e-wallet payments, and an increased focus on highly targeted marketing promotions, in response.
On 8 November, the Indian government announced it would immediately replace the Rs500 and Rs1000 notes with new Rs500 and Rs2000 denominations. This caused short-term cash liquidity issues for etailers, as cash on delivery is standard practice in the Indian market.
Koovs’ registered users increased 80% to 1.8 million during the year and its web traffic rose 77% to more than 78.45 million.
The firm said it continued to improve its gross margin position by improving intake margin and controlling the level of discounts given. It expects to generate positive gross margins in the next financial year.
“Koovs’ distinctive fashion proposition is really working with our young target market in India,” said chief executive Mary Turner. “Engagement with our young customer is delivering strong growth and we continue to significantly outperform by five-times the positive ecommerce sector growth in India.”
Last week the company announced it will expand in the Middle East and Asia-Pacific by working with international distribution and fulfilment partners, having signed its first international distribution agreement today to launch Koovs private-label brand on Souq.com this summer.
Amazon agreed to buy Souq.com last week.