| 2 minutes read

2 minutes read

How Brand Factory Makes Profit Even After Offering High Discounts

| Published on June 17, 2019

E-commerce business has grown exponentially in India. The sales and revenue are making new records every day but what makes these companies attractive are heavy discounts which ends up making losses for the company.

While online giants like Flipkart, Amazon are yet to find a way to turn profitable, Future Group’s retail chain Brand Factory is doing it for years even after giving heavy discounts throughout the year.

Let’s read how Brand Factory is profitable:

Selling one-season old merchandise


Brand Factory sells a ‘season minus one’ products which works as a factory outlet in a bigger way. This doesn’t mean that products sold by Brand Factory are damaged, defective or rejected in terms of quality, they are not exclusive. The products that go unsold from other lifestyle stores & brands are sold through Brand Factory. But after seeing the demand, the retail giant has started tying up with brands for exclusive merchandise also.

Selling Private brands

Brand Factory

Brand Factory has in-house brands like Bare, Rig, John Miller, Lombard, Indigo Nation, UMM which help the brand to earn high margins.

Low running costs

It is rightly said that money saved is equal to the money earned. Brand Factory works on the same policy as their running costs are pretty low as compared to other retail giants. This is because all their stores are stand-alones.

Also Read: BrandFactory Captures Indian Social Media With #MadeForMumbai Campaign

Talking about the future, Brand Factory has plans to add 40 new stores every year, with a focus on Tier II and Tier III cities. Currently, the brand operates with 94 stores.

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