Flipkart-owned online fashion retailer Myntra's private labels have turned operationally profitable in the last two months.
Flipkart-owned online fashion retailer Myntra’s private labels have turned operationally profitable in the last two months. With 13 private apparel brands in its portfolio, Myntra Fashion Brands (MFB) is eyeing a revenue of $300 million by the end of this financial year, clocking over 100% growth rate. It will help the company scale double-digit operating profit margin from 5% in June 2017. In FY17, MFB recorded a revenue of $115 million. Manohar Kamath, chief of Myntra Fashion Brands, said, “Our vision is to build Myntra Fashion Brands into the largest fashion house in the country in the next five years and be the supplier of private brands to the world.”
The private label vertical, which accounts for 23% of Myntra’s overall business, is expected to reach 35-40% by the end of FY18. “Our approach of building our own brands makes us unique. MFB is a key pillar of Myntra’s strategy to building differential offerings, cementing shoppers’ loyalty and increasing profitability. Myntra Fashion Brands today occupy nine of the top 20 brands on the platform,” Ananth Narayanan, CEO, Myntra & Jabong, said. Furthermore, the company is looking to invest more in areas, such as technology, design and marketing.
Narayanan said that the biggest brand in the private label segment by far is still Roadster, which will cross $100 million by the year-end. The other top brands for Myntra are HRX and All About You. “We have identified white space opportunities over a period of five years to develop a clear proposition through labels, such as Mast & Harbour, Dressberry, Ether, Anouk, K&K, and so on. These are groomed to be scaled to the next level, like a national brand,” Narayanan said.