Jazzmyride, a Delhi-based auto accessory solutions provider, said on Tuesday (March 15) that it is working to bring convergence in its online and offline operations.
The 6-year old firm has laid down a three-phase plan to make the convergence happen. In the first phase, Jazzmyride is looking to strengthen its presence in the e-commerce platform. In the second phase, it plans to open more retail outlets.
"We are looking to open 100 retail outlets in the next three years," Sunil Dhingra, co-founder, Jazzmyride said. At present, it has 3 outlets in the country.
The company will follow a top to bottom approach in opening dealership and wants to put in place a good franchise model.
"First we want to establish outlets in metro cities, then en-route smaller towns," Dhingra said. He informed that they are coming up with the largest auto accessory outlet in the country very soon, a 5000 sq ft showroom in Chennai.
In the third phase, Jazzmyride will look to become a giant player in the distribution of national and international brands.
"We already have import rights of 3-4 global companies in our kitty. Very soon we will have the distribution right for one of the biggest helmet maker," Dhingra said.
Jazzmyride is also the authorized seller of SCOYCO products in India. SCOYCO is one of the biggest auto accessory manufacturers for leading OEMs/ODMs across the globe.
What’s the key for success? Maintaining quality and following a profitable business model is the key to success, Dhingra says. He adds that in the last three years, average selling price has almost doubled from Rs 450 to around Rs 900 for them.
"You can spend some money on marketing and give occasional discounts. But too much emphasis on discount to boost sales can burn your cash and effect quality,” Dhingra said.
Bootstrapped Jazzmyride, which started with a seed capital of Rs 10,000 to create a website and stock a handful of products has achieved impressive growth since its inception. It has grown at a CAGR of 100 per cent over the years and is currently clocking Rs 20 year in revenue. But that’s not the end.
Dhingra said, “We expect the revenue to manifold in the next few years and remain highly profitable.”
The startup has attracted funding from domestic auto giant TVS when it invested 75 crores in three startups including Jazzmyride and two others. However, Jazzmyride is not eying funding in near future.
Dhingra says that e-com is going through the mature phase and it is good for companies like them which work on a profitability model.
“It is a good thing that investors in India have started asking for returns,” said Dhingra, adding that GMV is not important for Jazzmyride.
“GMV is not important for us. Building sustainability is. Companies like Facebook, Google and Microsoft weren’t built on GMV, but on a strict business model,” said Dhingra, who started his career at Tata Communications as a Solution Architect and worked with Infosys and Bharti Airtel where his responsibility was to generate new sale for products across multiple geographies.
As per Automotive Component Manufacturers Association of India (ACMA), India’s auto-aftermarket is pegged at $9 billion and is slated to become $13 billion by 2020. Facing a stiff challenge from the unorganised sector, the level of competition has increased in the auto service and accessory market. Startups like MeriCar.com, SparesHubs.com, 3M Car Care, Cross Roads, MyTVS, CarZcare, Cartisan, Bumper and a few more operates under the same umbrella.
BW Reporters
The author is Senior Correspondent with BW Businessworld
