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It is eyeing a share of about 65 per cent of the online fashion segment in the next 12-18 months. It claims it accounts for half the current market share. Myntra has eight private labels, and it is expected the count might double in a year, though the company did not officially provide any estimate.
To increase its presence across clothes, footwear and accessories, Flipkart-Myntra is actively considering acquiring some online and offline private labels. It plans to spend about $100 million in the coming year. “Recently, we set up a fashion incubator, in which 15-20 people will be given support in manufacturing, sampling, supply chain, etc, to grow private labels. After a year, three-four private labels might be acquired by Myntra,” said Mukesh Bansal, chief executive of Myntra and head of fashion at both Flipkart and Myntra. Currently, Myntra has about 650 brands on its portal, while Flipkart has a base of about 3,000 sellers.
Experts say the combined entity’s growth strategy was a tricky issue, as Flipkart and Myntra had separate brand identities. Both continue to have separate portals and brand strategies, at times contrasting each other. While Flipkart recently tied up with small and medium retailers to bring an affordable assortment of fashion products online through local retailers, Myntra is focused on high-street.
But Bansal disagrees. "There is absolutely no chance or thought that Flipkart or Myntra will merge as a single brand in the coming times. Flipkart will have a broad catalogue, including that of Myntra, while Myntra will continue to position itself as fashion curator. The merger has happened at the shareholder level, with no change in the experience of the consumer," he said.
The fashion teams of Flipkart and Myntra continue to be different, with separate supply chains.
"To build a position of an online fashion curator is difficult and it seems neither wants to take a step they can't go back on. Also, there is suspicion of contamination and losing distinction as brand identities. They are yet to arrive on an understanding of what the Flipkart-Myntra brand will be about," said Santosh Desai, managing director and chief executive, Future Brands.
