Sosandar, the e-commerce platform specializing in women’s clothing, has managed to thrive amidst the disruptive and uncertain times brought on by the lockdown period. The company has not only maintained its service but has also experienced significant revenue growth and cost savings. In fact, Sosandar has outperformed the wider online UK fashion market in terms of order growth and revenue generation.

During the first two months of the current financial year, Sosandar witnessed a remarkable 44% increase in orders and a staggering 62% growth in revenue. This achievement becomes even more impressive when considering the fact that the company has reduced its marketing spend.

Although the average basket size and returns have decreased, Sosandar has still managed to generate higher revenues. The company has even seen a 15% boost in new customer acquisition, despite cutting marketing spend by 69%. Additionally, Sosandar has successfully reduced losses by 55% and has struck agreements with major retailers such as John Lewis and Next to launch their products on their online platforms for AW20. Furthermore, the inclusion of Klarna as a payment option on the website has proven to be beneficial for customers.

In response to changing customer preferences during lockdown, Sosandar has adapted its product offerings to focus on more casual ranges. Recognizing the need for comfort, the company quickly adjusted its new-in products to cater to this demand. As a result, loungewear, denim, and casual summer dresses have experienced high demand, leading to sold-out items and customer waitlists. Although the lower prices of these products have resulted in a decrease in average unit and basket values, the sale of looser, less fitted items has minimized sizing issues and returns.

Sosandar has also witnessed a significant increase in browsing behavior, with traffic on their website soaring by 98% year-on-year. Although this may have led to lower conversion rates due to customers browsing for leisure or making more considered purchase decisions, the company has observed spikes in conversion following marketing emails and notifications about new-in products. This indicates that customers continue to engage with the brand.

In terms of financial performance, Sosandar anticipates a revenue of at least £9 million for the year ending on March 31, representing over a 100% growth. Furthermore, repeat orders have surged by 144%, and the active customer base has expanded by 111%. However, the average order value for the period decreased by 6% due to the mild winter and its impact on the product mix.

Despite these challenges, Sosandar has managed to maintain a strong cash flow, with £5.2 million at the end of March, £4.4 million at the end of April, and the same amount at the end of May. This has been achieved by effectively reducing marketing spend, managing stock levels, and flexing warehousing and fulfillment costs to meet changing demands. As a cost-saving measure, discretionary expenditure has been frozen, and around 60% of the workforce has been furloughed, with board members accepting reduced payments.

Overall, Sosandar has exhibited resilience and adaptability during the lockdown period, showcasing impressive revenue growth and implementing effective cost-saving strategies. With successful partnerships with renowned retailers like John Lewis and Next, and the convenience of Klarna as a payment option, Sosandar is in a favorable position for continued success within the online fashion market.

Useful links:
1. Sosandar Official Website
2. John Lewis Online Platform