Jewellery is an integral part of every Indian women’s special occasions. With changing times, new start-up ideas have evolved to solve the basic problems of individuals.
This Start-up Sunday we bring you one such start-up that curate unique jewellery that helps fashion-savvy but busy working women build their accessories collection with high-quality jewellery in a subscription box model.
Bling Bag is a personalised Discovery E-commerce Jewellery Subscription service in India, revolutionising the way today’s modern and busy woman discovers and styles fashion accessories.
Mumbai-based Harvi Shah, an SP Jain alumnus and a computer engineer-turned-entrepreneur launched Bling Bag during her final month of pregnancy. It is an e-commerce platform that follows a monthly subscription-based model for jewellery.
Harvi has 11 years of work experience in various domains. It was during her travels abroad for work she observed that women in those cities accessorised their outfits effortlessly. She felt that the Indian fashion industry offers a lot in apparels but lack unique offerings in jewellery. And that was exactly why Bling Bag was born.
Bling Bag was bootstrapped with Rs 5 lakh of Harvi’s personal savings and launched in 2015.
Change in Business Strategy:
When launched, Blingbag offered subscriptions at a lower price point, that could be found easily in local markets. To create additional value for customers the strategy was changed and subscriptions with higher price point were launched. These collections were trendy and unique, and based on themes like festivals, seasons, celebrity style etc.
BlingBag has tie-ups with large domestic and international manufacturers who supply 10,000 pieces of a single design. The subscription model, economies of scale and direct tie-ups with manufacturers, help in getting jewellery at good prices with good contribution margin.
The monthly subscription is worth over Rs 3,500, which is offered to subscribers at Rs 1,500. Apart from monthly subscriptions, they also have an online store called ‘Bling Boutique’ for accessories. The plan is to build on it and make it a one-stop accessories shop.
The main revenue stream is the subscription model but the Bling Boutique revenues have grown considerably over time. Since Subscribers regularly take up longer subscription plans there is strong cross-sell, where people end up buying matching jewellery from the Bling Boutique making an average cart value of Rs 2,000.
It targets women in the 22-40 age group, who are comfortable with online shopping. Currently, it has over 20,000 registered customers. They reach out to their subscribers through social media and various fashion influencers. Today, Bling Bag has a repeat customer base of 45 percent.
Bling Bag closely tracks Customer Lifetime Value (CLV) and Customer Churn Rate. Building on tech, it wants to give a more personalised experience to users, by showing products she is likely to love on top of the page.
It has turned profitable in the first year itself. Its monthly revenue growth is 10 percent with no paid marketing. Their next move is to build inorganic growth by investing in marketing and to increase the subscriber base and team.
According to ATKearney, the fashion and lifestyle industry will overtake the consumer electronics industry to become the number one in e-commerce by 2020. Fashion accessories market is expected to reach $7.5 billion by 2020 with more than 50 percent share taken by jewellery.
The competition is tough in this category. The brand’s e-store ‘Bling Boutique’ competes with Label Life, ToniQ, Pipabella, and others, Bling Bag Jewellery subscription is India’s only personalised jewellery subscription bag.