Myntra, fashion retailer owned by Flipkart, as part of its brand accelerator programme has tied up with two women’s apparel brands- western wear brand Chemistry and ethnic wear brand AKS. However, the company declined to reveal the value of the deals but it will take equity in these two brands, primarily based on their sales performance over the next few years.
Chemistry has a reach of about 5 lakh customers. The brand expects to increase its reach to three million customers by 2020. AKS expects to increase annual gross sales to $60 million from $6 million by the same time.
Ananth Narayanan, chief executive of Myntra in an interview to Livemint said that it is aiming at $500 million in gross sales from partnerships with 15 more such brands. The fashion retailer is expected to sign up with another five more partnerships by July end.
Myntra, which also owns the fashion site Jabong, expects to sign five more such partnerships within the next month, chief executive Ananth Narayanan said in an interview. The gross merchandise value (GMV) at Jabong has risen 30%, post the merger with Myntra in July, 2016. Myntra selects these brands based on their design aesthetics and the talent of the team behind the labels.
“We wants to create a portfolio worth $1 billion over the next three years with the brand accelerator programme,” said Narayanan.
Through brand accelerator, Myntra want to shift sales away from discounts and differentiate its platform. It also looking to consolidate its market share in fashion space to out run Amazon India, which is fast catching up in the segment. Myntra, with acquisition over Jabong, has been leading fashin sales in the country.
It also has brands including Roadster, HRX and Moda Rapido. The private brands will add 6% of its overall revenue by the end of the year. Myntra manages 50-60% of its deliveries in-house while remaining are fulfilling by third party logistics players including ekart.