MangoStreet.com sells kidswear Online. It plans to launch a mobile app for mobile shopping.
Mohit Yadav, founder and CEO, MangoStreet.com talks to SupportBiz about his business and E-retailing. Excerpts:
Q1) What are the key areas that will continue to drive value for Online businesses?
Solutions for real problems like improving penetration of products / services; improving the customer experience; catering to a need when there are no / or limited alternatives can all be great opportunities.
Q2) Please share your experience in incepting MangoStreet.com?
MangoStreet.com, launched in January, is an Online store that sells kidswear. The Kidswear market in India is fragmented and the penetration of domestic brands is low. International brands on the other hand are absolutely inaccessible beyond the Metros. On MangoStreet, kidswear (domestic and international) is accessible from anywhere in India. The initial response has been very positive, which is why we are able to ramp up quickly.
Q3) MangoStreet.com E-retails school uniforms. Why?
School uniforms are a very different segment and a real problem exists because of the absence of organized players. Schools rely on local vendors, who work with only a few schools. Further, as school uniforms are not a fashion product they can be standardized. That’s what we’re trying at MangoStreet -- a virtual store which caters to schools across India, offers great convenience and high quality products at affordable prices, all thanks to economies of scale. Also, MangoStreet can add value and be a partner in success – conduct workshops for students, award scholarships among other things – which a local vendor cannot do.
Q4) What are the challenges you foresee in this business?
The kidswear market is still in the nascent stages hence understanding demands is a challenge. Parents do all the shopping, so understanding their mindset is equally important.
Q5) Users perceive online payments as a difficult task? Do you agree?
In India, E-commerce businesses thrive on the ‘cash-on-delivery’ payment method. A majority of all business comes from this mode of payment. So, yes there are concerns but companies have refined the solution accordingly.
Q6) What is your go-to-market strategy for the next 18 to 24 months?
Our aim is to create a one stop solution for kids’ shopping needs -- hundreds of brands available across categories, be it apparel, footwear, accessories or back to school kits. We have launched our marketing campaign on various digital platforms. In the coming months we will tap Radio and the Print Media.
Q7) Critics believe off-line activity is necessary while building an Online E-commerce brand. Your opinion?
While it can be true for some categories, going off-line in the kidswear category is not the best approach. Unlike in adult clothing, there are over seven sizes in kidswear and hence managing inventory is a major challenge. An E-commerce company can solve this problem by taking to central warehousing. A brick and mortar store would need to hold inventory across stores making the business extremely capital intensive.