The online retail market has been evolving and has seen increasing efforts being made by retailers and exporters who already have an established offline business to tap into the growing online retail market. In a move that follows the recent market trends, New Delhi based Kansin Group, a 30-year veteran of the garments export industry has taken its first steps in the online retail industry. The company has launched Shopnineteen.com, a web exclusive brand for girls, at affordable prices. The website had gone live in the third week of March 2012.
Speaking on the occasion of the launch, Gobind Singh Pahwa, Founder & Vice-Chairman, Shopnineteen.com, said, “We want to offer our customers an exceptional virtual shopping experience which is easy and has a lasting impression, so that they keep coming back. We focus on giving them value for money every step of the way.”
The Kansin Group is an established exporter of garments and leather products to Europe and has been in the industry for the past 30 years. The company had revenues of over $7 million last year and is expecting that to go up to $10 million in the current year.
The company has an in-house design and manufacturing team and has recently set-up an E-commerce team to handle new business. The e-commerce venture is headed by Narinder Mahajan as its CEO, who was previously Associate Director at Tradus.In and has also worked at Spencer’s Retail for 2 years .
Speaking about the future plans of the company, Gobind said, “Our aim in the next two years is to expand our product portfolio and become India’s biggest women’s wear fashion brand in the e-commerce domain.”
The website has a user-friendly interface and offers products across various categories such as apparels, bags, shoes, accessories etc. The site is also among the first to offer video catalogue of most products for its customers. The company manages over 2,500 SKU’s over 8 key product categories, such as, apparels, accessories, footwear etc.
The company has a 15-day replacement policy and assures 100% dispatches within 24 hours of order confirmation. The company currently has an in-house team for deliveries in Delhi/NCR and has tied up with BlueDart as its primary carrier, followed by Aramex and First Flight. The company currently generates over 1/6th of its business from Delhi and has warehouses in Tughlaqabad and Okhla. It offers all major payment options such as credit cards, debit cards, net banking, through PayU, as well as Cash-on-Delivery on orders exceeding Rs.1000. The company is quite bullish about the market and has also started its marketing activities using Google Ad Choices at various sites.
The Kansin Group is owned by Kuldip, Gobind and Harivansh Singh Pahwa. Shopnineteen is a brand of Nineteen Apparels Pvt. Ltd., which is based out of New Delhi and was set up in mid-July 2011 with an authorised capital of Rs.5 Lakhs and a paid-up capital of Rs.1.5 Lakhs. Interacting with Iamwire, the promoters said that their e-tail venture is currently self-funded and they want to first establish the business over the next year before looking for investments.
The company competes in a highly competitive market which is price-sensitive as well as particular about quality. Some of the other players operating in the segment include niche players such as Lady Blush, multi-category players such as Myntra, 99labels, Jabong, Fashion & You, as well as multi-channel players such as Shoppers Stop, Madame etc. The organised retail market for apparels has huge margins of between 30-50% depending on the product and the business model followed. According to a report by McKinsey, the apparel market in India is set to touch over $40 billion by 2015, while the E-Commerce market is set to touch over $8 billion as per a recent report by Forrester Research Inc.