Fabmart’s Long Term Viability
Fabmart’s advantage may be that it is a pure e-commerce venture; advertisement revenues are not counted upon. In fact, the store does not welcome ads, except those relating to books and music. Any available virtual real estate is used for in-shop promos. With initial VC funding of about Rs 5.5 crore, the online store recently mopped up another Rs 25 crore with second round funding from venture capitalist
With a registered customer base that is likely to grow, the store is confident about revenue flow, and Vaitheeswaran says Fabmart hopes to break even by its third year when it expects business turnover to touch Rs 45 crore.
A jewellery store was launched recently, while a grocery shop is on the anvil, with the ultimate aim to emerge as a focused virtual superstore. The jewellery store, which went online in June with about 5,000 items, targets the impulsive buyer. And jewellery transactions are expected to drive up the average value of an online transaction.
The grocery shop will attract online customers for need-based purchases. Fabmart’s aim is to achieve a mix in customer demographic profile – with both impulsive and need-based consumers. Fabmart would also need to gear up for competition from players such as
With a customer base of over 25,000, Fabmart hopes not too many will switch loyalties. The e-tailer hopes to consolidate further in the time that competitors will take to adapt to the dynamics of the Net business. Says Vaitheeswaran: “There’s nothing like time gained.”
Thus, we can see that a marketer uses Internet for marketing products, its brands and also promoting one’s as well as others brands and building trust in the minds of the customers..
The meaning and the definition of “Internet Marketing” changes from organization to organization. Rediff resorts to buying and selling its products online and getting revenues by the use of advertising other company’s advertisement on its website. Hungama & Contest to Win deals in promoting and helping other company’s in building their brands online.
Fabmart’s advantage may be that it is a pure e-commerce venture; advertisement revenues are not counted upon. In fact, the store does not welcome ads, except those relating to books and music. Any available virtual real estate is used for in-shop promos. With initial VC funding of about Rs 5.5 crore, the online store recently mopped up another Rs 25 crore with second round funding from venture capitalist
With a registered customer base that is likely to grow, the store is confident about revenue flow, and Vaitheeswaran says Fabmart hopes to break even by its third year when it expects business turnover to touch Rs 45 crore.
A jewellery store was launched recently, while a grocery shop is on the anvil, with the ultimate aim to emerge as a focused virtual superstore. The jewellery store, which went online in June with about 5,000 items, targets the impulsive buyer. And jewellery transactions are expected to drive up the average value of an online transaction.
The grocery shop will attract online customers for need-based purchases. Fabmart’s aim is to achieve a mix in customer demographic profile – with both impulsive and need-based consumers. Fabmart would also need to gear up for competition from players such as
With a customer base of over 25,000, Fabmart hopes not too many will switch loyalties. The e-tailer hopes to consolidate further in the time that competitors will take to adapt to the dynamics of the Net business. Says Vaitheeswaran: “There’s nothing like time gained.”
Thus, we can see that a marketer uses Internet for marketing products, its brands and also promoting one’s as well as others brands and building trust in the minds of the customers..
The meaning and the definition of “Internet Marketing” changes from organization to organization. Rediff resorts to buying and selling its products online and getting revenues by the use of advertising other company’s advertisement on its website. Hungama & Contest to Win deals in promoting and helping other company’s in building their brands online.