Myntra does not plan to merge Jabong with it and the two companies will continue to function as different brands, Myntra’s CEO Ananth Narayanan has said. In an interview with CNBC-TV 18, Ananth Narayanan spoke extensively on why the Flipkart-owned Myntra decided to acquire fashion e-commerce firm Jabong. “There is no intention to merge the companies or the brands. Jabong and Myntra as individual brands have their strengths,” Ananth Narayanan said. Expanding on this, he said, “We are at 3% penetration of online fashion retail. I think it can be much much larger. With strengths that both brands bring, I think we can actually grow the market”. “95% of our attention is going to be on growth and we will of course leverage capabilities. Growth is the goal,” he added.
Ananth Narayanan gave three reasons for acquiring Jabong. “Jabong, both as a brand and a company, is focused on international brands, on women, their strength area is NCR – all these things made it quite attractive for us,” he said. “When we thought of we can continue shaping the fashion and lifestyle market, we thought Jabong would be a terrific asset. While it’s an acquisition, I actually look at it as a partnership,” he explained. “The reasoning is actually quite simple. Fashion and lifestyle is the second largest category in e-commerce. I think it will be a $40 billion category by 2020. Vertical fashion destinations are unique,” Narayanan added.
According to Narayanan, the acquisition makes sense from a Flipkart group perspective as well. “From the group perspective it made sense because Flipkart + Myntra + Jabong can now operate on all parts of the market and continue to actually shape the market. We are very excited about it, both as a group, and as Myntra,” he said. Jabong had been on the block for a sell-off for quite some time now, and Flipkart has pipped companies like Future Group, Kunal Bahl’s Snapdeal and Aditya Birla-owned Abof to acquire it.