Online women’s fashion brand The Loom, which has recently opened its first store in Delhi, is eying 10 per cent revenue from the offline channel this fiscal, Komal Goel and Aman Goel, co-founders, The Loom.
By this fiscal end, the brand plans to open 5 company-owned, company-operated stores in Delhi, Noida, Gurgaon, Bangalore, and Mumbai. It further plans to take the total store count to 25 stores by the next fiscal end.
“We decided to go offline to tap the consumers who only shop offline along with catering to the evolving needs of the online consumers. We plan to go slow this fiscal year as our target is more on the learning side and improving the customer experience,” co-founders said.
The average store of the brand will span across 1,000-1,500 sq ft and the CAPEX involved in opening a store of the brand stands at Rs 1 crore.
The curated marketplace, which offers 40,000 handpicked products from more than 1,000 designers along with its private label, plans to offer 400-500 products at the stores.
“At present, 50 per cent of our revenue is contributed by our private label and our repeat customer ratio stands at 35 per cent,” they asserted.
Currently, the average order value and the customer acquisition cost of the brand stand at Rs 6,000 – Rs 6,500, and Rs 1,500, respectively.
Apart from this, the brand is also planning to expand its Delhi-based manufacturing unit from 22,000 sq ft to 40,000 sq ft by January 2025.
“We will be investing Rs 3 crore to expand our capacity from 15,000-20,000 products per month to 50,000-60,000 products per month,” they said.
The bootstrapped brand, which closed the last fiscal at Rs 120 crore, is targeting Rs 200 crore this fiscal.
“At present, we earn 15 per cent of our revenue from international orders,” they stated.
Currently, the brand enjoys an EBITDA of 12-15 per cent, and going ahead, it might look for strategic investment, mainly for offline expansion.
