Fashion and lifestyle e-tailer Myntra, a Flipkart company, which is currently operating at $500-million annualised GMV, is targeting 35 per cent of its revenue from its private labels over the next 12-18 months. Currently, Myntra offers 11 of its own private brands to shoppers, which contribute to 20 per cent of the overall revenue.
“We have built a strong portfolio of brands catering to men, women and kids, leading with our bestseller brand Roadster, DressBerry, Anouk, Mast & Harbour, Invictus, Yellow Kite, ETC, Wrogn, Kook N Keech, HRX by Hrithik Roshan and All About You, which is Deepika Padukone’s premium women’s line launched two months ago,” Abhishek Verma, Head – Myntra Fashion Brands, told BusinessLine. “We are targeting to increase the contribution of our private labels from 20 per cent of our overall revenue to 35 per cent in 12-18 months,” he said.
Verma credits the huge awareness created by Ranveer Singh, brand ambassador for fast-fashion brand, Roadster, for making it the number one jeanswear brand in the country in a short span of 2-3 years since its launch. “Roadster offers a portfolio of 5,000 styles a year to a target group of 20-30 years of age, 70 per cent of who are male, with prices ranging from ₹1,300 to ₹4,000. Roadster has become the most popular brand on Myntra today,” said Verma.
Besides the 11 private labels, Myntra is also experimenting with a technology insights based, in-house brand called Moda Rapido which was created and launched six months ago.
“Based on customer insights gleaned from our platform, we launch new fashion collections under the Moda Rapido brand once every four weeks. This process normally takes other brands a few months to execute. We are still in the process of experimenting with this tech-led fashion brand,” said Verma.
Asked if there are plans to launch more private labels, Verma said, “We already have a strong portfolio of 11 private brands which have been built after identifying white spaces in the fashion and lifestyle category. Of our 11 private brands, we expect at least 2-3 to break into the top national brands in the next few years.”
High-margin brands
As e-commerce firms look to achieve profitable growth, the focus on high-margin private brands will continue to be a priority, say industry observers.
As per a study conducted by Google, by 2020, the online fashion retail market is expected to touch $35 billion, contributing to 35 per cent of the total online retail revenue of $100 billion generated in India.
