How FashionandYou lost its No.1 position in Indian fashion E-Commerce Industry?

E-commerce has transformed the whole of India. The Indian online fashion market has witnessed remarkable success over the past few years. Among the various online ecommerce website design stores, “FashionandYou” was a known name. 

From a leading online ecommerce website design to not-so-famous store, the journey of FashionandYou is a roller coaster ride. Have a look at the whole article and understand what went wrong with “FashionandYou” that made it lost its No. 1 position in the industry. 

ecommerce website design

Birth Of  “FashionandYou” 

Fashion&You is a fashion and lifestyle ecommerce website design which was launched back in 2009. This is a website that has turned around the way in which the Indian population used to shop for fashion wear. 

FashionandYou was launched as a “Prime Member Only” website. It came out in the market as a discounted website that offered designer brands to the customers. It mainly focused on ladies merchandise. 

Primarily “FashionandYou” kept maximum of their stock for females only. Later, with time it expanded its area to men and Children fashion too. It was always a website that offers great discounts- up to 80%. This entitled middle class to get their hands on designer brands within their budget.

In an era where offline businesses didn’t know that goods can be sold online, Fashion&You was selling brands at great discounts. This made it go viral among the young and educated generation. It offered various merchandise like handbags, shoes, perfumes etc to keep its customers up to date with fashion. These merchandises were from top brands which were not accessible to them earlier. This attracted the public to the most. 

By offering too much, it gained immense popularity in no time. Seeing its success, many players came forward to join the race. Websites like 99labels.com, fetise.com, theprivatesales.com also launched themselves as prime member websites. However, by that time, Fashion&You established itself enough that any revival websites wasn’t be able to threaten it. 

Fashion & You Description

Founder: Harish Bahl, Pearl Uppal and Gaurav Kachru.

Incorporated On: December 2009

Headquarters: Gurgaon, Haryana

Discount On Fashion & You: Up to 80%

Facebook Users: 12L+

LinkedIn Followers: 12000+

“FashionandYou”- Marketing Strategies That Strengthen The Brand

FashionandYou became a leader in the online fashion industry by ecommerce website design using various aggressive marketing strategies. Despite this, the main reason behind its success was its first-mover advantage. Being the first in this sector, it got benefits of monopoly for a sufficient duration and time for imprinting its name in the public’s mind. 

Following are the marketing strategies which made Fashion&You No.1 in fashion E-commerce Industry. 

  • Use of Affiliate Marketing by Fashion&You helped it to reach to the audience and attracted shoppers to purchase. 
  • Offering coupons of worth Rs. 1000 for sending and accepting the invitation for joining Fashion & You, attracted customers to sign up.
  • Regular posting of articles worked best in increasing its awareness and engagement. 
  • Fashion & You made full use of SEO, Adwords and PPC advertising strategies.
  • Utilized Facebook Marketing Strategies
  • Used Display Banner Advertisements.

Initially, these strategies helped FashionandYou to touch the heights and getting popularity. But with time, something went wrong inside the companies and it wasn’t able to cope up these strategies, and it affected FashionandYou and made it lost its No.1 position.

Things That Went Wrong and Made The Team To Fall Apart

Fashion & You was enjoying the immense popularity it got in its initial years. Suddenly, something went wrong inside the company. They did not officially disclose but from some sources, it leaked out that there was a rift between the top management of the company. This leads the team to fall apart and affected the business adversely. 

However, there are many other reasons too for the downfall of such a popular company “FashionandYou”.

  • Competitors Impact

With the popularity and success of FashionandYou, many competitors tried to enter the market. Initially, this colossal competition had no impact on FashionandYou. In a short while, the user-friendly interface of the other brands attracted the customers and provoke them to move from FashionandYou to other websites

The “Member Only” feature that worked best for Fashion&You went against it in some time. With the entrance of Myntra and Jabong, people shifted to them as they allowed them to browse the product without signing up.

  • Limited Product Catalogue

Indian market is full of choices. Our Indian customers never settle for less. They always need too many choices for making a decision. Failing of FashionandYou to meet its customer’s requirements resulted in the loss of its No.1 position.

Fashion & You focused on selected brands. This narrow down the scope of their website. While on the other hand, Myntra and Jabong were offering too many choices, almost from every brand. This made the customers move to them without giving a second thought.

  • Drop-shipping System

FashionandYou was working according to the drop-shipping system. It means they list the items on their website without having it in stock. Hence, after placing the order, visitors had to wait for longer duration say 15-20 days for the order to get delivered to them

This affected FashionandYou the most when its competitors started the delivery of the products in 3-4 days. Then, people started finding it difficult to wait for such a long duration. This resulted in the loss of permanent customers of Fashion&You. 

  • Quality Compromise/Bargain With Quality

Fashion&You always attract the customers with its 80% sale. Behind this sale, they offered their customers with unsold items which were lying unsold from the last season. While other websites were offering fresh products that too with great deals. Hence, customers shifted their attention from Fashion&You and moved to the other side.

  • Affiliates Withdrawal

To move along with the time, Fashion & You had to keep its “Member-only” feature aside and offer open access to all the customers. This shift directly impacted the affiliate campaign type. It had to shift from cost per lead (CPL) to cost per sale (CPS) and to offer a fixed amount of 8% to its affiliates for every sale they make.

Although, at that time its competitors were offering Rs. 500 to every affiliate. This turned the affiliates to Myntra and Jabong instead of staying with Fashion & You.

  • The decline in Marketing Budget

The other major factor that shaken the whole company was the decline in its marketing budget. Marketing being the backbone for every business, it is crucial to spend sufficient amount and focus on marketing strategies. With the fall in sales with no reduction in acquisition cost, all the fundings of Fashion & You started getting vanished. 

Hence, FashionandYou went on a low budget. This left no option but decline in the marketing budget. With no proper marketing, the downfall of the company is obvious. Especially when lots of other E-commerce website design are spending huge and putting a lot of effort into marketing. 

FashionandYou wanted to maintain the position of being the largest fashion retailer for women and continue to wow its consumers with the superior consumer experience. But the failure of understanding the importance of digital marketing and user engagement brought it down from the No.1 position which it holds.