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The online fashion space was guarded days after the biggest merger in e-commerce, between Flipkart and Myntra, but there are signs of further consolidation. While Flipkart is expecting to tap a large chunk of the Indian fashion and apparel market, estimated at $60 billion, after the consolidation, others in the category are gearing up to face the challenge.
Jabong, a rival to Myntra, rules out any immediate merger or acquisition. Praveen Sinha, co-founder and managing director said, "These (whether Jabong would merge) are speculation. Our preferred way of growing would be to go for public listing."
He added, "If in the future, there is a right partner with right synergies that can accelerate our growth, that could be one of our multiple options." Until a few months ago, Myntra Chief Executive Mukesh Bansal had said quite the same.
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While Jabong is in the top bracket of e-commerce players, with an annual gross merchandise value of $300 million (Rs 1,800 crore), there are several smaller niche players in the fashion space, too. Their survival would depend on how well these are funded and the ability to retain their consumer base, according to analysts.
The small niche players are banking on their 'unique assortment of products' and engagement with clients as their key for survival, while they pump in funds .
Limeroad, an online marketplace fashion portal that recently raised $15 million from existing investors, says it has no plans of joining hands with big e-retailers. "We are too young as a company to think about it. We are well-funded as of now and will survive despite the presence of big players because we have been successful in distinguishing ourselves as a brand," said Shuchi Mukherjee, co-founder and chief executive officer. Mukherjee says unlike fashion aggregators such as Jabong, Myntra or Koovs, websites like Limeroad working on a marketplace model do not need intensive capital to sustain and will be profitable sooner.
Preeta Sukhanter, CEO and co-founder of Labelcorp that houses celebrity labels such as Bipasha Basu and Malaika Arora Khan, said private labels would sustain due to specific tastes, customer relationship and exclusivity of the products.
Although the market is big enough for multiple players, the exclusivity and broad range of products is not enough to keep the consumers hooked. It will also be about how fast you can deliver the product and enhance the experience of the customer on the website, said Sandeep Ladda, India Technology Leader, PwC India.
Logistics and innovation will play a big role to that end. For example, Flipkart recently launched a 'try and buy service' pilot in Banglaore where company executives go to your home with your chosen set of clothes. You can try these and pay for the one you like. Shoumyan Biswas, senior director of marketing at Flipkart, said this was an initiative to offer a personalised experience to the consumer - a trial room at home.
