Men’s innerwear brand XYXX Apparels, plans to increase its marketing and advertising spend by 33% in FY20, Yogesh Kabra, founder, XYXX Apparel told ETBE. “We invested 12% that is about Rs 42 lakh of our overall revenue in advertising and marketing in FY19. In FY19, the company’s overall revenue stood at Rs 3.5 crore,” Kabra added.
The company had received fresh funds of Rs 2 crore from Sauce.vc in March, this year.
As per Kabra, in FY19, the company largely used digital mediums for advertising. Of the total advertising expenditure 5% was diverted towards Facebook and the rest 7% went towards e-commerce platforms such as Flipkart and Amazon. Kabra stated that the company is yet to devise a marketing plan for this year, “It’s too early for us to plan anything right now. We will be indulging in every form of marketing and at the end whichever will bring us the highest ROI, we will invest more in that particular medium,” he explained.
Kabra further stated that with TV being the most expensive medium to advertise, the company so far has refrained from it. Not to mention, it doesn’t have enough capital as of yet, he noted.
The premium men’s innerwear brand claims that it is more popular online than offline. “70% of our sales takes place on the online platform and the rest through brick-and-mortar retail shops,” he noted.
Furthermore, Kabra claimed that most of the revenue comes from other e-commerce platforms such as Jabong, Myntra, among others. “60% of our goods are sold through third party e-commerce and the remaining 40% is from our own site,” he added.
The company claims to be generating 500-600 order a day, with the average ticket price (ATP) being Rs 850. At present 35% of its orders fall under repeat purchase. Furthermore, the company levies Rs 60 as delivery charge.
According to Kabra, the company’s revenue jumped by nearly 4000% in FY19 to Rs 3.5 crore, The company posted revenue of Rs 8.2 lakh in FY18, as per the financial data accessed by business intelligence platform, Tofler. Kabra further claims that the company’s revenue will see a three times growth in FY20. However, Kabra claims that the company witnessed a drop in profits in FY19. “Due to constant growth our profits are less as opposed to FY18,” Kabra said.
Currently, the brand is available in almost 500 stores and aims to expand their presence upto 1,200 stores by the end of this fiscal. “Our aim is to sell 10 lakh pieces by the end of FY20,” Kabra added.