TIDMKOOV
RNS Number : 8799I
Koovs PLC
05 September 2016
For Release at 7am BST on 5 September 2016
Koovs plc
Trading update for 01 April to 31 July 2016
KOOVS achieves strong sales* growth of 115% year on year and a
significant increase in brand awareness from <1% to 18%
Sales GBP5m/INR473m and weekly web traffic up to 1.4m from
1m
in four months to 31 July
Koovs plc ("Koovs", the "Company" and, together with its
subsidiary undertakings, the "Group") (AIM: KOOV), the
fashion-forward business focused on the young Indian e-commerce
market, today announces a trading update for 17 weeks 01 April to
31 July 2016.
Financial and operational metrics year on year
-- Sales* up 115% to GBP5m / INR473m.
-- Brand awareness increased from <1% to 18%, driving website
traffic to 1.4m visits per week, increase of 142%,
-- Registered users now 1.2m and social media registered
followers 1.7m, both more than doubled.
Koovs' strategy and business plan continue to deliver
significant growth in sales and brand awareness. Sales* in this
period reached GBP5m/INR473m, 115% up on the same period last year,
while Koovs increase in brand awareness to 18% has contributed to a
step change in web traffic, registered users and social
engagement.
India offers a huge opportunity for ecommerce and online fashion
in a rapidly expanding market which is expected to increase
five-fold by 2020, to GBP2.5 billion. Koovs 115% sales growth over
this period is notably ahead of India's market benchmarks of 50%
annual growth in ecommerce, and 75% in online fashion.
Mary Turner, CEO of Koovs plc, says:
"The market for online fashion in India is growing rapidly and
Koovs continues to outperform market growth. Our investment in
brand marketing is delivering excellent results, significantly
increasing brand awareness and establishing a strong platform from
which to build brand affinity and customer loyalty."
Delivering strategic goals
Amplifying brand, extending product choice and increasing
customer engagement.
Brand: In the last 12 months Koovs has invested in its first
major cross-platform brand marketing campaign 'Step into Koovs'.
Launched in November 2015, the first phase of this campaign raised
brand awareness from below 1% to 8%. The phase two execution from
May 2016 has further accelerated Koovs brand profile to 18% - the
first step in building brand affinity and engaging new
customers.
Product: The company continued with its strategy to expand the
Koovs Private Label with the introduction of categories for Fashion
Basics and K Denim. In total the number of lines offered by
Koovs.com is now 10,000, an increase of 43% year on year. New
launches for Autumn include the introduction of Knitwear and
Tailoring categories to the Private Label and also Koovs latest
designer collaborations with celebrated London illustrator Hattie
Stewart and India's Gauri & Nainika, famous for their red
carpet and party wear collections.
Designed in London, Koovs own exclusive Private Label is both
the fastest-growing and largest single brand accounting for over
42% of all sales, a growth of 160%, further building brand equity
and customer loyalty.
Engagement: A key metric in driving future customer transactions
is building brand engagement. Koovs cross platform approach is both
driving increased traffic to the website and building customer
engagement. Today, Koovs has 1.2m registered users and 1.7m
registered social followers.
Capital Raising
Koovs continues with its phased capital raising to support the
Company's three-year business growth plan.
Waheed Alli, Chairman of Koovs plc, says:
"Over the last four months we have seen evidence of further
strong progress across all business metrics, as Koovs continues to
win in the fashion-forward e-commerce market for young, style
conscious, fashion lovers in India."
Key Performance Indicators
4 Months 4 Months Growth Year ended Year ended
01/04-31/07 01/04-31/07 March March
2016 2015 2016 2015
Memorandum(^) Memorandum(^)
Koovs.com INR 473 INR 220 +115% GBP10.7m GBP3.6m
sales* m m
Weekly visits
to the website 1.4 m 0.6 m +142%
Conversion 1.4% 1.3% +8%
Brand Awareness 18% <1%
Registered
Users 1.2 m 0.4 m 201%
Product
Range 10,100 7,200 40%
-------------- --------------
* Gross sales order value placed through the KOOVS.COM website
including taxes. This does not represent the revenue of the
Group.
^ Sterling equivalent at constant exchange rate of INR94.06 to
GBP1.
Notes to Editors
Koovs is focused on building KOOVS.COM into the leading fashion
destination in India. The Company is headquartered in London, where
the majority of its design and buying team is based, with all other
operational functions based in India. The marketing campaign video
can be seen at www.youtube.com/koovsdotcom
For further information,
please contact:
Koovs plc Tel: +44 (0)20 7151 0170
Mary Turner/Rob Pursell
Peel Hunt LLP
Dan Webster / George Tel: +44 (0) 20 7418
Sellar 8900
Jock Maxwell Macdonald
(ECM)
Brunswick Group LLP
Nick Claydon /Alison Tel: +44 (0) 20 7404
Kay 5959
This information is provided by RNS
The company news service from the London Stock Exchange
END
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