India-based Aditya Birla Group’s flagship e-commerce site Abof.com, launched in October 2015, is set to become the second online venture of the company after Trendin.com to shut its operations.
The Group will reportedly close down Abof by the end of this year.
Tough competition from online rivals such as Flipkart and Amazon, and their strategy of offering heavy discounts to attract customers, made it difficult for Abof to survive. The Group cited the same reason behind its move to close down Trendin.com operations last year.
The Group will pay four and a half months’ salary as compensation to all the 240 employees of Abof, reportedly said, Aditya Birla Group HR Director Santrupt Misra, who believes that currently, online ventures are struggling to make money in the Indian market.
Abof was launched by the Group to sell a more limited and fashionable range of merchandise. It also started selling products at discounted prices but fail to garner customers’ interest.