Superbalist expects R1bn private-label sales in three years
Online fashion retailer Superbalist, owned by Naspers, hopes to generate more than R1 billion in earnings through its in-house labels in the next three years.
Superbalist launched its self-titled flagship private label in June. It is designed in South Africa and mostly manufactured in the country.
The company was founded in 2010 and is headquartered in Foreshore, Cape Town.
Other in-house ranges, which already account for 40% of the label’s business, include Edit, which appeals to the moderate female customer; Pop Candy, Superbalist’s kids wear brand; and Sixth Floor home wear apartment essentials.
Superbalist.com co-CEO Claude Hanan in a statement said he believed a range of factors will be behind the huge growth.
“The world is moving into a ‘see now, buy now’ space, where tapping into trends quickly is key. Producing our own lines gives us far more control so that we can move on trends immediately, and get an idea to market faster than traditional brands. Costs are more efficient and as a result, margins expand.”
He said to get private label right, customer-obsession is critical. “As a tech-first company, we have the resources to ensure our entire product lifecycle is trackable and that data is acted upon.”
According to the statement, worldwide, the business of private labels is flourishing, with CB Insights reporting the sales growth of private labels to be three times higher than branded products.
“The launch of the collection further entrenches Superbalist’s position among global goliaths like ASOS, Amazon and Net-a-porter, who are all pushing private labels to boost consumer propositions, diversify ecosystems and intensify cost-efficiencies amidst tough economic times,” it said.
According to the company, there are no expansion plans and the focus is on growing the business within South Africa. Online shopping currently accounts for around 1.4% of total retail in SA, so it believes there is still a huge opportunity for growth in SA.
A year ago, Naspers’s Media24 and Takealot.com merged their online fashion brands Spree and Superbalist.