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Two major Indian e-commerce firms — Flipkart and Myntra — are set to achieve combined revenue of ₹20,000 crore from their fashion business in the next three years, although they remain tight-lipped about current revenues.
E-commerce in India, according to a KPMG report, could grow to $50-70 billion (₹42,000 crore) by 2020 from $13 billion (₹7,800 crore) now.
Online marketplace Flipkart acquired Bangalore-based fashion e-tailer Myntra in May this year. Ever since the acquisition, the fashion business of the combined entity has been growing rapidly and together command more than 60 per cent of the total fashion e-tailing business.
According to a recent report by venture capital firm Accel Partners, which has investments in Flipkart, said that fashion e-commerce volumes have doubled since 2012 and is expected to grow 400 per cent in the next 3 years on back of growing young demography and changing consumer behaviour.
Growth driversTalking to BusinessLine , Mukesh Bansal, founder of Myntra and Head of Fashion at Flipkart, said that the combined fashion business at both Flipkart and Myntra will cross the 70 per cent market share by next year.
He also added that small town consumers, smartphone penetration and private labels of the combined entity are the major growth drivers.
While Flipkart’s founder Sachin Bansal, in an earlier interaction, said that mobile commerce has grown from just 5 per cent a three years ago to 60 per cent now, Mukesh Bansal said for Myntra alone revenues from mobile are contributing 45 per cent of the total revenues, up from 15 per cent in the last six months. “We are confident that it will reach 75-80 per cent by next year,” Mukesh Bansal added. He said that he is working on creating at least four to five ₹1,000-crore private brands at Myntra in the next three years. It has created brands such as Roadster, Dressberry and HRX and plans to launch 3-4 private labels in the coming months through its fashion week next month.
Ties up with IMG RelianceThe company has tied-up with IMG Reliance for the same. Through this initiative, the company plans to make designer wears more accessible and affordable for common masses.
The fashion week will be both an offline and online event, in which Myntra plans to launch a few international brands.
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