BackMyntra makes big bets with private labels
The e-commerce firm expects Roadster to become the biggest-selling apparel brand on its website this year
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Bangalore: India’s largest online retailer Myntra expects Roadster, one of its 10 private apparel brands, to become the biggest-selling brand on its site this year, overtaking brands such as Puma, Adidas and Levi’s, as the company eyes a significant expansion in its higher-margin private labels business.
At least two of Myntra’s other private labels, women’s wear brand Dressberry and HRX, will also feature in the site’s top 10 selling brands this year.
Myntra, which has 10 private brands currently, will add about six more such labels this year including a women’s footwear label and an innerwear brand, senior vice-president Abhishek Verma said.
“We’re trying to offer a full width of selection across the lifestyle needs of a consumer. So our private brands will offer products across the spectrum— tops, bottoms, accessories and footwear. That is our strategy for private brands. Accessories and footwear are going to be the major focus areas for us this year," Verma said.
Private labels will generate about a fourth of Myntra’s sales by the end of the year, up from less than 20% currently, he said. Myntra reported revenue of ₹ 441.6 crore for the year ended March 2014, an increase of more than 100% from 2013. Its loss for the year grew to ₹ 172.8 crore from ₹ 134.2 crore from the previous year.
Among online retailers Myntra has by far been most successful in building a large private brands business ahead of its parent Flipkart and smaller rival Jabong.
A large private brands business can boost margins and protect Myntra from a potential backlash by third-party brands that have complained about heavy discounting by online retailers.
“This year, we want to create unique identities for brands so that they resonate with consumers independently. So we’re going to communicate with consumers regularly, back our brands with advertising campaigns, and keep bringing out new product designs and innovation for consumers," he said.
Verma, a former consultant at McKinsey & Co, is one of the new leaders at Myntra, which was acquired by bigger rival Flipkart last May for an estimated value of more than $330 million.
Some of Myntra’s senior executives including marketing head Vikas Ahuja left after the acquisition by Flipkart, and last month, the company moved two of its senior leaders, chief operating officer Ganesh Subramanian and chief creative officer Gautam Kotamraju, to build a fast fashion business.
Until now, no online retailer has offered fast fashion brands in India, although they have become very popular abroad.
“Fast fashion requires deep expertise in the fashion value and supply chain. This year we’re going to experiment in this space and improve our understanding of what it takes to create a really successful fast fashion business," Verma said.
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