E-commerce business has grown tremendously in India. The response of Indian customers towards the e-commerce business model is appreciable. The sales and revenue of e-commerce firms are making and breaking records every day, the reason behind the success is the heavy discounts which ends up making losses for the company.
Future group retail chain Brand Factory, even after giving heavy discounts throughout the year brand factory is running on profit.
Let’s read how’s it profitable:-
- Selling one-season old products
- Selling private brands
- Low cost
SELLING ONE SEASON OLD PRODUCTS:-
Brand Factory sells one-season old goods which work as factory outlets. This doesn’t mean that they sell damaged products the only reason is they are not exclusive. The merchandise sold here is one-season old which comes from various outlets of a particular brand. The apparels which remain unsold are brought here and are sold through Brand Factory.
Brand Factory’s Tremendous growth has attracted various brands and they are tying up with Brand Factory for exclusive merchandise.
SELLING PRIVATE BRANDS:-
AS Brand Factory is owned by Future Groups, where Future Group is an Indian conglomerate that owns Various fashion and lifestyle brands. Brand Factory sells in- house brands like Bare, Rig, John Miller, DJ&C, Buffalo, Indigo Nation, Converse and UMM which help to earn high-profit margins.
There is a saying “ Money saved is equal to money earned”. Brand factory runs on the same policy as there running costs are pretty low as compared to other retail giants. Brand Factory success is so great that currently there are 94stores in India and plans to add 40new stores every year focusing on Tier2 and Tier3 cities as well.