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Success stories are to learn but failure stories are also meant to learn. Sharing about the failure stories helps others to avoid the same mistakes. And thus it also makes the environment real. Especially it is more applicable to the startups<\/b><\/strong>. Many startups<\/b><\/strong>\u00a0get closed within just 3 years of starting.<\/p>\n What to consider before starting your online business<\/a><\/p>\n Abof <\/b><\/strong>(All about fashion)- Once upon a time considered as a big name in the eCommerce industry\u00a0in India. It has been considered as a competitor of Flipkart and Amazon (obviously the giants\u00a0in India). But Aditya Birla Group\u2019s flagship eCommerce site Abof.com<\/b><\/strong>\u00a0will close down its transactions and operations by the end of the year.<\/p>\n Company with a giant backbone like Birla group decided to opt out from selling online this kind of cases is not for the first time. But the point is, what is the factor behind this?<\/p>\n The possible reasons are listed below:<\/p>\n You may like reading:<\/p>\n Let\u2019s discuss all of them one by one.<\/p>\n If you have noticed then you would know that Indian fashion sites like Myntra, Jabong,\u00a0and\u00a0Ajio are called to be gigantic and other giant eCommerce<\/b><\/strong>\u00a0sites like Flipkart and Amazon, these all focus on display ads. Once you search any product on Google, then after where ever you click or whatever you search or get signed in to any social media, you will get the advertisement of the same product in ad bar from any of these 4 eCommerce<\/b><\/u><\/strong><\/a>\u00a0sites. What I feel is, maybe Abof has failed in this strategy. Well, Myntra and Jabong these 2 are the direct competitors of Abof and both of them are focusing on social media ads, native ads, re-marketing and re-targeting. Somewhere Abof has failed in this. Moreover, in any niche marketplace, there are only 2-3 dominating players others are just peanuts. For example, in India, in 2 minutes noodles\u2019 market, Maggie noodles dominates the market. In toothpaste, Colgate and Unilever do this. Thus, in fashion eCommerce <\/b><\/strong>industry, Myntra and Jabong are the top names which win. To have a stand in front of them is a little bit difficult (Although Abof\u00a0has the backbone like Birla).<\/p>\n If you get anything cheaper on another site why would you come to my site? This is what might have happened. If anyone sees the same brand, same product and\/or same color, pattern, design at a cheaper rate in one place and costlier at another place, then obviously that person would like to buy the product from the cheaper site rather opting for costlier. And if we think from the seller\u2019s point of view, everybody is there to earn money. Nobody likes to lose money. So, at least, everyone would prefer to keep the profit ratio high. But it doesn\u2019t happen in the beginning. For that, a company has to fight for long and has to make a place in the market. In the beginning years, a company has to do business with less profit margin or no profit. For this, need to stand with low price and low profit. Birla wants to earn billions on the spot as like his other ventures which are not possible in all the cases.<\/p>\n One more thing, when Abof\u00a0launched, they were saying that the site would not offer a discount. In an interview in March, chief executive Prashant Gupta had told ET that their \u201ctarget consumer is not the guy who is looking for a deal\u201d.\u00a0Who would buy the product with expensive rate while they are getting the similar product at a cheaper rate? Here, keep in mind that later on, Abof\u00a0itself has offered discount on 70% of the products.<\/p>\n Abof\u00a0started with the aim to sell their own brand along with few other brands. Now the question is why would the customers choose to buy the in-house brand at full price though they get the similar product at a cheaper rate of a well-known international brand?<\/p>\n Flipkart, Amazon, Myntra and Jabong make the availability of almost all the top brands on the discount rate. Why would anyone leave these big names to shop for fewer brands and fewer options on Abof?<\/p>\n Do you want to have your own website like Amazon? Here is the chance for you to go with Amazon Clone<\/u><\/a>.<\/p>\n \u00a0 What do you think? A name can matter to the failure or success of any brand? Obviously, it affects. Abof\u00a0looks like an abbreviation of its tagline and that is \u201cAll about fashion\u201d. But how many customers care to read tagline? Very few. And thus, the name Abof, make sense to the company itself only. It seems like no efforts have been taken to choose the name. Nobody can think that it is about fashion. I mean who can think that Abof\u00a0is all about fashion? It can be the abbreviation of Aditya Birla\u2019s Only Fashion too.<\/p>\n Unless you are in eCommerce game for very long term, create a sustainable brand name that your consumers can relate to when they talk about fashion, which didn\u2019t seem to be the case in Abof.<\/p>\n \u00a0 People have an overdose of fashion and clothing market. Whether it is online or offline wherever you see, you will get a massive market of clothing and fashion. Now, people are fed up with going to a new store or new site. In this busy life, nobody has time for trial and error method. Customers would prefer to opt for a proven store or proven eCommerce<\/b><\/strong>\u00a0site.<\/p>\n This was the complete analogy of\u00a0<\/b><\/strong>Abof\u2019s <\/b>failure, the points\u00a0which I felt as the reasons behind the failure of Abof. Do you have any new reason\u00a0in mind\u00a0for Abof\u2019s failure?\u00a0Share your views about Abof\u2019s failure\u00a0here in a\u00a0comment box.<\/p>\n Take a look at some of the interesting blogs crafter by NCrypted Websites.<\/p>\n Success stories are to learn but failure stories are also meant to learn. Sharing about the failure stories helps others to avoid the same mistakes. And thus it also makes the environment real. Especially it is more applicable to the startups. Many startups\u00a0get closed within just 3 years of starting. What to consider before starting […]<\/p>\n","protected":false},"author":427,"featured_media":2448,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[314,22,320],"tags":[476,480,406,479,477,405,478,474,348],"class_list":{"0":"post-2447","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-e-commerce","8":"category-industry-watch","9":"category-online-marketplaces","10":"tag-abof","11":"tag-analogy","12":"tag-business","13":"tag-case-study","14":"tag-e-commerce","15":"tag-ecommerce","16":"tag-fashion","17":"tag-marketplace","18":"tag-startups-2"},"_links":{"self":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/posts\/2447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/users\/427"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/comments?post=2447"}],"version-history":[{"count":0,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/posts\/2447\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/media\/2448"}],"wp:attachment":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/media?parent=2447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/categories?post=2447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/tags?post=2447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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