With an eye on capturing over 70% of the online fashion space jointly as said by Flipkart co-founders Sachin and Binny Bansal and Myntra's Mukesh Myntra will start selling its most popular private brands, Roadster, Dressberry, Anouk and HRX on Flipkart. The fashion e-tailer may also contemplate other online channels. At present, Myntra has 12 private brands accounting for over one-fifth of its revenues.
We (Flipkart and Myntra) are operating as two distinct entities. We will eventually take our private brands to other portals. Among the brands, Roadster, Dressberry, HRX and Anouk have gained significant momentum. We will initially look at online channels like Flipkart, Abhishek Verma, senior vice-president, Myntra fashion brands, told FE.
Gaining a foothold in the high-margin online fashion business was one of the key reasons for Flipkart's $350-million acquisition of Myntra. According to a report by Accel Partners, one of the investors in Flipkart, the online fashion, footwear and accessories market in India was valued at $559 million in 2013 and is projected to reach $2.8 billion by 2016, growing at a CAGR of 71%.
In another push to create and curate private brands, Myntra will invite applications from fashion designers from across the country in the next three months for its soon-to-be-launched fashion incubator. The e-tailer is flush with funds currently, having raised $50 million from investors led by Premji Invest in February, following its acquisition by Flipkart in May that came with a promise of an infusion of $100 million over the next few quarters. Myntra will look to bring on board 10 designers with "a spirit of entrepreneurship".
They will be groomed for six to 12 months, following which their products will be showcased on Myntra's portal. After completion of tenure, Myntra will invest in at least three of them, based on consumer response.
Our focus is on creating more fashion brands. We will invite applications from designers fresh out of institutes as well as those who have been working in the field for sometime, said Verma. Initially, we will help them strengthen their brand story before helping them create a line, starting with conceptualising a brand to creating and designing it.
Though Verma declined to comment on the investments in this regard, sources said the e-tailer plans to pump in around $10 million into this endeavour, which is expected to be an annual event in Myntra's calendar.