AJIO Luxe repeat-customer orders fell 15% over two quarters while average order value held steady. What happened?

Introduction

AJIO Luxe is Reliance Retail's luxury and premium fashion destination, available as its own app and website, with international and Indian designer brands. Its catalogue has been growing quickly; Reliance's quarterly updates in FY26 reported brand counts up by a third or more year on year. Yet in this scenario, orders from repeat customers fell 15% over two quarters while average order value stayed stable. Repeat customers are the core of any luxury business, because a small group of high-spending clients drives a large share of revenue.

The task is to find the cause. The tension is that the catalogue is growing, so on the surface supply looks healthy. Something is pushing loyal customers away.

Step 1

Clarifying Questions (3 minutes)

• How do we define a repeat customer and a repeat order?

• Hypothetical answer: A customer with at least one previous delivered order in the last 18 months; repeat orders are orders from such customers.
• Impact: The drop may come from fewer repeat customers or fewer orders per repeat customer; we must separate the two.

• Is the drop across the board or concentrated in certain brands, categories or cities?

• Hypothetical answer: Unknown; we need data.

• Have there been changes in the app, pricing, loyalty benefits or delivery in the last two quarters?

• Hypothetical answer: The AJIO Luxe app was redesigned; a loyalty tier benefit (free express delivery) was tightened; some global brands moved to a concession model where the brand controls pricing.
• Impact: Several candidate causes.

• Have total orders and new customer orders also changed?

• Hypothetical answer: New-customer orders grew 10%; total orders are roughly flat.
• Impact: The problem is specific to retention, not demand overall.