Many online shopping ventures were not able to beat the two giant ecommerce sites and their heavy discounting techniques-Flipkart and Amazon. The closing of the Aditya Birla Group’s flagship ecommerce site Abof.com is the proof. The site would be made unavailable to operate at the end of this year.
Abof is the abbreviation of Aditya Birla Online Fashion. A city center meeting of 20 minutes was conducted by the owners. The employees were informed that December 31,2017 would be the last day of its working.
The HR director at Aditya Birla Group, Santrupt Misra, announced exit of the group from the online retail space. “Looking at how the big and long term ecommerce businesses continue to struggle and are unlikely to make money for some time, it did not seem logical to continue as if everything is all right in the sector,” said by him.
In case the employees of the ecommerce site wish to quit the company, they will get four and-a-half months’ salary as compensation.
This is the era of Flipkart and Amazon. The other ecommerce sites are facing a tough competition. After the padlocking of Trendin.com last year for the same reason, Abof is the second ecommerce venture closure for Aditya Birla.
Abof came in to existence in October 2015. Headquartered in Worli, Mumbai, India, an Indian multinational consortium, the Aditya Birla Group, with more than 120,000 employees worldwide was operating in 40 countries. It was founded by Seth Shiv Narayan Birla in 1857. Abof is a part of the group which works in sectors such as branded apparel, viscose staple fiber, metals, fertilizers, cement, viscose filament yarn, carbon black, chemicals, insulators, financial services, telecom, BPO and IT services.
Abof, a shopping site rendering services with just one click offered wide variety of choices to its customers in all types of things.
As stated by the sources “November onwards they will start closing down their stocks.”
All the outfits owned by Abof will be absorbed by its branded apparel division Madura Fashion & Lifestyle as confirmed by the other source.
When the online shopping website, Abof was launched, it was said that the site would not offer discounts, rather it would sell a more limited and fashionable range of stock. The chief executive of Abof, Prashant Gupta said in an interview in March 2017, that their “target consumer is not the guy who is looking for a deal”.
The interview statement of the CEO was in everyone’s mind and then came the discounted products of the ecommerce site more than a year later. Nearly,70% of the products on the portal were available on discount.
It has been said by the experts that ecommerce in India has become synonymous with offering products at discounts. Heavy discounts especially during the festive season are its example. Costumers have been tempted by the companies such as Flipkart, Amazon, Paytm, Snapdeal and ShopClues by offering discounts in everything from pin to plane.
With this Abof’s journey comes to an end.