Initial Situation
- High Advertising Costs: An alarming ACOS of 125% on Amazon, meaning the brand was spending more on ads than it was earning back in sales.
- Significant Monthly Ad Spends: Approximately ₹240,000/month on Amazon Ads with unsustainable returns.
- High Return Rate: A substantial percentage of orders were being returned, impacting profitability and operational efficiency.
- Mixed ASIN Performance: A portfolio of products (ASINs) with many underperforming, diluting overall ad spend effectiveness and obscuring profitable items.
Challenges
- Intense Competition: The Indian online apparel market is highly saturated, making it difficult for new or struggling brands to gain visibility and market share.
- Profitability Erosion: The exceptionally high ACOS was directly eating into profit margins, making scaling nearly impossible.
- Managing High Returns: Apparel, by nature, has higher return rates, but the brand's figures indicated underlying issues with product presentation, sizing, or quality perception.
