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Myntra’s private-label brands portfolio, which delivers about 23 per cent of the fashion and lifestyle e-tailer’s business, has turned EBITDA positive in the last two months.
This is the first step in Myntra’s journey to achieving overall profitability in the January-March quarter of 2018. The e-tailer expects the private-label business to deliver 35-40 per cent of its overall business in the next 18 months.
“Myntra Fashion Brands (MFB) with a portfolio of 13 brands has grown from a $150-million business to deliver $300 million this year at 100 per cent CAGR (compound annual growth rate),” said Ananth Narayanan, CEO, Myntra and Jabong. “Our private brands registered a positive EBITDA of 5 per cent in June, putting it on a path of double-digit EBITDA profitability at scale, during the last quarter of this fiscal. MFB is a key pillar of Myntra’s strategy to building differentiated offerings, and occupies nine of the top 20 brands on the platform.”
Myntra brands at present also contribute 7-8 per cent to Jabong’s sales, he said.
Over 50 per cent of Myntra’s business come from brands that have been built over a period of five years. Denim and casual wear brand, Roadster, the largest brand on Myntra, has achieved a run rate of over ₹600 crore; while Mast & Harbour and HRX brands are at a run rate of around ₹160-170 crore each. Moda Rapido and Here&now brands, which the firm claims to be the first of its kind to be completely conceptualised and designed using artificial intelligence and machine learning, are the fastest-growing and most profitable brands in the MFB portfolio.
Myntra opened its first physical retail store for Roadster in Bengaluru this March. Plans are also on to groom and scale two other brands — Mast & Harbour and Dressberry — to the next level with marketing investments planned for next year.
“Our vision is to build MFB into the largest fashion house in the country in the next five years and be the supplier of private brands to the world,” said Manohar Kamath, Chief of MFB. “We are investing in building brand equities, innovating using consumer/business insights, building strong vendor relationships, using AI-based, tech-led smart pricing, and managing each category differently with tech-led innovations plus visual merchandising.”
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