Aditya Birla Group to shut down Abof.com
Cement-to-telecom conglomerate Aditya Birla Group is reportedly downing the shutters on its fashion e-tailing venture Aditya Birla Online Fashion’s Abof, as it fails to compete against the deep discounting-led model of rivals Flipkart and Amazon. The company management informed the staffers that it will not operate beyond December 31. “Looking at how big and long-term e-commerce businesses continue to struggle and are unlikely to make money for some time, it did not seem logical to continue as if everything is all right in the sector,” said Santrupt Misra, HR director at Aditya Birla Group.
“All 240 employees of the company would be given four-and-a-half months’ salary as compensation if they quit,”misra added.
Abof’s private label, Skult, will be absorbed by Madura Fashion & Lifestyle, the group’s apparel division. Abof was floated in May 2015, when the group consolidated its branded apparel business under lifestyle retailer Pantaloons Fashion and Retail India Ltd. The e-tailer sold apparel, footwear and accessories, housing its own merchandise as well as other brands. This is the second e-commerce venture that Aditya Birla Group has shut down. It had shut down Trendin. com last year for similar reasons.traditional retailers have been venturing into e-commerce of late, albeit with limited success.