Flipkart-owned fashion retailer, Myntra, which turned its private labels and brands businesses profitable last year,is now aiming to bring approximately one third of its total revenues from this segment in FY19.
Flipkart-owned fashion retailer, Myntra, which turned its private labels and brands businesses profitable last year, is now aiming to bring approximately one third of its total revenues from this segment in FY19.
While the company has already reduced its losses by 25% in FY17 to Rs 655 crore from Rs 823 crore over previous year, Myntra is well poised to achieve profitability in the near term.
Omni Channel Bet
Myntra opened first roadster store in March of 2017 in Bengaluru, marking its foray into the brick and mortar space and the company has been expanding aggressively ever since then.
Over all, the company has four mango brand stores, two roadster stores and 15 more are in the pipeline this year.
While the company plans to scale up roadster, the fastest growing Myntra brand to 50 by 2002, it also plan for another 25 Mango stores and 15 Espirit stores in the same time.
The reason for the omnichannel bet is very clear. One, it not helps Myntra with its branding and two the company has witnessed an increase in the online sales fueled by the offline presence and for Ananth Narayanan, chief executive officer, this is an area of big focus.
"We are continuing to grow in the north of 40-50% range, both Myntra and Jabong platforms are doing well. Our new categories like personal care is growing 400% year-on-year. So that has been great for us. This is expected to be a very good year, this is also the year, where I expect all of our stores to get critical mass, so the whole omnichannel focus will be big this year," Narayanan said.
Walmart – Myntra Synergies
Even as the Indian ecommerce space saw the mega buyout of Flipkart by Arkansas-based retail giant, Walmart, for a whopping $16 billion last month, marking the biggest foreign direct investment into India.
The group’s combined fashion entity, Jabong and Myntra, are eyeing a sizeable chunk of the additional $2 billion that Walmart has already committed as a part of the deal.
Ananth Narayan adds, "We have never been capital constraint, in the Flipkart Group there has always been funding for good businesses and good ideas and I expect that to continue."
With Walmart being a strategic long-term investor and being the world’s largest retailer, Myntra, hopes to take away a few learnings and implement them at an appropriate time.
First Published: IST