Aditya Birla group owned eCommerce store Abof.com. Aditya Birla Group announced that it’s shutting down Abof.com, the fashion launched in 2015- which stood to Aditya Birla online fashion. Aditya Birla has the largest fashion retailers have owned many brands from Allan Solly, Louis Philippe, pantaloons, people online, peter England, planet fashion, van Heusen are named under Aditya Birla retail fashion.
Abof sold Aditya Birla’s brands as well as Biba, fabindia, and Benetton. Aditya Birla group eCommerce platform is unwilling to keep making losses. Abof will be closed their gates to 31st December of this year. Employees who want to quit could do with 4 months’ pay or it will be transferred to in other business platforms.
Abof.com closed due to Competition
Abof.com is on gate of closing down to homegrown and international competition between flipkart and amazon , paytm mall are giving huge cashback and cash discounts on the sale .Altough we don’t get a good number of sales and expectations performance going down and making disappointment . It’s 240 employees of abof.com who decide to quit get 4.5-month salary as a compensation package or who don’t quit their job will manage in other business unit .
Discount kill the Fashion
Due to huge discounts from large competitors like amazon, Flipkart giving season discount due to this 70% of the product get in discount make the cause of big loss and shut down of abof.com. All guys are looking for a great deal given in huge volume by e-commerce giant take advantage of small competitors. No more place for small competitors bringing of close down. The small startup is not able to survive between the large competition.
Every business start with a set of assumption to create their business to the top of the world. But today’s scenario of eCommerce many newcomers and startup are not growing due to much competition in eCommerce markets. Every big homegrown and foreign eCommerce giving huge discounts to their customers that make new or other competition goes out of fashion.
Likely Aditya Birla group eCommerce abof.com will close soon due to competition make causes of eCommerce business ongoing loss and other business entities like Tata group with Tata Cliq and Reliance with Ajio.com entered on E-commerce .