The Loom, an online women’s fashion brand, which has recently inaugurated its first store in Delhi, is aiming to achieve 10 percent of its revenue from offline channels this fiscal year, according to Komal Goel and Aman Goel, the Co-Founders.
By the end of this fiscal year, the brand intends to launch five company-owned, company-operated stores in Delhi, Noida, Gurgaon, Bangalore, and Mumbai. Additionally, it aims to expand its total store count to 25 by the end of the following fiscal year.
“We chose to venture offline to reach consumers who exclusively shop in physical stores, while also addressing the changing preferences of online shoppers. Our focus this fiscal year is primarily on learning and enhancing the customer experience, hence we intend to proceed gradually,” explained the co-founders.
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Store Operations and Customer Experience
On average, the brand’s stores will cover an area ranging from 1,000 to 1,500 square feet, with an estimated CAPEX of INR 1 crore required for each store opening.
The curated marketplace, featuring a selection of 40,000 handpicked products from over 1,000 designers alongside its private label, intends to showcase 400-500 products at its stores.
Private Label and Revenue Streams
“At present, fifty percent of our revenue is generated by our private label & our repeat customer ratio stands at 35 percent cent,” they stated.
Presently, the brand’s average order value ranges between INR 6,000 and INR 6,500, while the customer acquisition cost stands at INR 1,500.
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Additionally, the brand is planning to increase the size of its manufacturing unit in Delhi from 22,000 square feet to 40,000 square feet by January 2025.
“We are allocating INR 3 crore towards expanding our capacity, aiming to increase our monthly production from 15,000-20,000 products to 50,000-60,000 products,” they said.
Financial Goals and Strategic Direction
The bootstrapped brand, which wrapped up the last fiscal at INR 120 crore, has set its sights on achieving INR 200 crore this fiscal.
They mentioned, “Currently, 15 percent of our revenue comes from international orders.”
At present, the brand maintains an EBITDA ranging from 12 to 15 percent. Looking forward, it may explore strategic investments, particularly to fuel its expansion into offline channels.
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