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Myntra counting on in-house brands for growth

  • App-based fashion retailer Myntra is banking on its in-house
    brands to push growth at a time when local e-commerce players are under
    pressure to cut cash burns and turn in profits, the
    Times of India reported.

  • The company’s  focus
    • App-based fashion retailer Myntra is banking on its in-house
      brands to push growth at a time when local e-commerce players are under
      pressure to cut cash burns and turn in profits, the
      Times of India reported.

    • The company’s  focus
      on creating online private labels, a strategy it adopted early on, puts it in
      direct competition with in-house brands of traditional brick-and-mortar
      retailers such as Shoppers Stop, Lifestyle, Future Group and Spencer’s, the
      report said. Most other specialized online fashion players like Jabong do not
      have a robust private brand strategy so far.

    • Myntra CEO Ananth Narayanan told the newspaper the firm is
      expecting to rake in as much as Rs 2,000 crore from its private brands at the
      end of 2016, a timeline by when Myntra plans to hit Rs 6,500 crore in GMV.
      Narayanan’s offline rival Shoppers Stop currently garners over 17% from its
      leading private brands like Stop and Life, and it aims to take the same to 20%
      by 2017, Shoppers Stop MD Govind Shrikhande said.

    • Going forward, Myntra plans to retain its strategy of being
      a platform for mass premium products. A larger share of private brands will
      protect Myntra from third-party merchants or brands that are not keen on the
      discounting model of e-commerce firms, according to the
      ToI report.

    • Narayanan said with an increased focus on private brands,
      the company has started moving away from deep discounting in order to achieve
      profitable growth. Abhishek Verma, head, Myntra Fashion, said, “Each
      private brand helps us to create a different and unique identity in the
      consumer’s mind. We will be expanding the product portfolio among the 12
      private labels with a larger push on women-centric fashion products.”

     

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