Together, Myntra and Jabong, will be able to create the strongest online fashion & lifestyle destination in India, says Ananth Narayanan, the CEO of Myntra and Jabong.
Together, Myntra and Jabong, will be able to create the strongest online fashion & lifestyle destination in India, says Ananth Narayanan, the Chief Executive Officer of Myntra and Jabong. Earlier this week, Flikart-owned Myntra announced that it will acquire Jabong for roughly $70 million. In an interview with Arunava Biswas and Smriti Jain, Narayanan talks about how the acquisition of Jabong will help Myntra, what it means for the staff of Jabong and Myntra’s plans for attaining profitability. Edited excerpts:
From being rivals to partners, how will Jabong fit into Myntra’s plans for the e-commerce market?
Jabong is a truly special company and has several achievements to its credit. In particular, Jabong has a large loyal customer base with a large share of these being discerning women customers. It has established a strong position in the large NCR fashion market. It is an enviable brand destination with more than 1,500 high-street brands listed and also enjoys deep customer patronage, as is evident from its high Net Promoter Scores. Jabong’s exceptional talent and its strong culture has enabled all of this. A lot of these strengths are complementary, and we are confident that together we will be able to create the strongest online fashion & lifestyle destination in India, and strengthen Myntra’s position in this segment. We believe this will help accelerate the path to profitability for both the entities.
Would you require further fund injection after the deal?
As per Flipkart group policy we don’t share any financial information.
What about the possibility of eating into each other’s market shares? If I am an occasional shopper of both brands, how do I distinguish now in terms of deals?
Rather than eating into each other’s market, we definitely see synergies in four immediate areas; in logistics, where with E-kart and Myntra we would be able to provide the Jabong customers with differentiated fashion specific services; in leveraging our capability in deploying technology at scale, complimentary and mutually beneficial brand exclusives across both platforms; the deep brand relationships which both Myntra and Jabong independently have; in addition, we share the same Fashion DNA– a confluence of creativity and technology in equal measure. This we believe is critical to building the online fashion segment where verticals are uniquely positioned to win.
What does this deal mean for discounts on either Myntra or Jabong?
Each company would continue to pursue strategies defined by themselves.
Do you expect any layoffs? What does the deal mean for the staff of Jabong?
As of now, we have no reason to believe that there will be any layoffs. This transaction will provide Jabong employees an opportunity to shape the future of fashion e-commerce at a larger scale. We are confident that we will be able to offer personal growth opportunities and attractive careers to retain the high performing talent at Jabong.
Myntra aims to be the first profitable e-commerce company in India, but Jabong has been incurring losses, even though they have narrowed. Will this push back the plans to clock profits this fiscal?
As of now, Jabong and Myntra will continue as separate, independent brands. We strongly believe in profitable growth and are confident that, together, time to profitability will be further accelerated.