Bombay Dyeing to enter the e-commerce Segment in India
Bombay Dyeing, the century old bed and bath products of the Wadia Group is now planning to enter the lucrative eCommerce sector in India. Sources of the company were quoted saying that the exclusive eCommerce website would give customers access to a wide collection of bed and bath products from Bombay Dyeing.
The officials in-charge of eCommerce set-up are expecting to have the website up and running by end 2012 and are currently in talks with several logistics companies to streamline the delivery systems for better and faster delivery of the consumer orders. Currently Bombay Dyeing sells its bath and bed products across 300 exclusive stores and over 2000 multi-brand stores.
The sources say that Bombay Dyeing is looking to create another source of revenue for the company through the e-commerce route since the cost of setting up the complete e-commerce route is far cheaper than setting up any other source of revenue. The decision for Bombay Dyeing could not have been timed better, especially since the company posted losses of over Rs. 27 crores in the last quarter on revenues of over Rs. 450 crores, due to increasing costs. The company hopes to generate revenues of over Rs. 3 crores from the e-commerce website in the first year and is already planning to exponentially increase the revenues over the next five years to offset costs from their exclusive and multi-brand outlets.
Even though Bombay Dyeing is currently selling its bed and bath products through several e-commerce websites like tradus.com, Jabong.com and futurebazaar.com, the company intends to differentiate itself from these sites like never before. Bombay Dyeing is planning extensive customer interaction through its e-commerce site with the help of contests to engage customers and plans to provide bidding options for numerous deals and discounts.
There have been many retailers who have gone online in the past due to the potential for profits at low costs, the e-commerce industry provides. Many industry experts feel that Bombay Dyeing will be able to provide better deals and discounts to their customers because of the e-commerce site being an additional stream of revenue in comparison to e-commerce sites who offer the discounts and deals even at the expense of incurring losses.