Ajio set to sell H&M products, ending exclusivity for Myntra | Mint

Ajio set to sell H&M products, ending exclusivity for Myntra

Online marketplaces typically thrive on exclusive partnerships which attract new consumers and boost brand sales on the platform. (Mint)
Online marketplaces typically thrive on exclusive partnerships which attract new consumers and boost brand sales on the platform. (Mint)

Summary

  • Advantage Ajio as it already has many exclusive tie-ups; Myntra will still sell H&M products

Reliance Retail’s online fashion platform Ajio is set to feature products from Swedish fast-fashion major H&M on its website, potentially signalling the end of the exclusive partnership between H&M and Myntra.

H&M entered the Indian market in 2015. In 2018, the retailer launched its online store and app and, a year later, forged a partnership, making Myntra the sole online marketplace for H&M’s offerings. While H&M will continue its collaboration with Myntra, Ajio will also feature H&M products, marking a significant expansion of the brand’s presence online, said people aware of the matter.

The move is set to benefit Ajio, which has exclusive tie-ups to sell brands such as Gap online. Reliance Retail holds the long-term rights to develop the Gap brand offline and online in India. It is also set to launch Chinese brand Shein to bolster its footprint in the country’s fashion retail market.

“While we cannot comment on market speculation, our endeavour is to tap into the high-potential market in India. Our primary goal is to be the preferred shopping brand, which is not only fashionable but accessible to all. To keep up with the ever-evolving e-commerce and digital landscape, we are leveraging our strong brand presence and customer loyalty to effectively penetrate the market," Yanira Ramirez, country sales manager, H&M India Pvt. Ltd, said in response to Mint’s queries.

Online marketplaces typically thrive on exclusive partnerships which attract new consumers and boost brand sales on the platform. In a market like India, where e-commerce firms continue to invest in acquiring new customers, collaborations with brands such as H&M, one of the world’s top-selling fashion labels, is even more essential.

Ramirez said H&M’s long-standing partnership with Myntra has exceeded its high expectations, and has ensured the brand is even more accessible to its customers in India. “With H&M celebrating its eighth anniversary in India, we are excited about what lies ahead. We will continue to explore opportunities to enhance customer’s experience and expand our offline reach as well as our online presence," she said.

Industry experts said H&M’s move is likely be a game-changer for Ajio which already has an exclusive brands portfolio. “Myntra does a substantial business for H&M, including the kids’ range; so this will benefit Ajio," said an executive of a retail chain, seeking anonymity.

Ajio features over 5,500 brands that includes a portfolio of exclusive international brands, owned-labels, besides homegrown brands, including Puma, Superdry, Gap, USPA, Steve Madden, Levis, MarksandSpencer, Only, Armani Exchange and Nike.

H&M’s India debut ushered in a culture of fast-fashion clothing. In FY22, H&M India, which operates 55 stores in 28 cities, posted revenue of 2,115.18 crore, up 49% from a year ago. Its profit rose to 25.29 crore, according to data from business intelligence platform Tofler.

Mint’s queries to Ajio didn’t elicit any response till press time.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
more

MINT SPECIALS

Switch to the Mint app for fast and personalized news - Get App