Post Walmart-Flipkart deal, it looks like Myntra, owned by the Indian marketplace, is leveraging the network of the global retail major. As a part of its international expansion plans, Myntra is in conversation with Walmart to sell its private labels in foreign markets via the retail giant’s offline stores.
In a conversation with Business Standard, Ananth Narayanan revealed his plans to target the foreign markets where a larger number of Indians reside.
Myntra owns 14 private labels which range from bestsellers to small brands. It is especially focusing on its bestsellers like Roadster and celebrity-backed brands like HRX and All About You in the overseas distribution plan to make a greater appeal among diasporas.
Recently, in August 2018, Myntra had been a hot topic when it neared $2 bn annual run rate in GMV. This tremendous growth of Myntra was fueled by these very private labels like Roadster, HRX etc.
In FY17, Industry estimates suggested that private labels contributed 25 per cent of the company’s total revenue.
With all these figures it only makes sense that the company chose to first expand its distribution of private labels internationally in its larger plan of making parts of its business international within 3 years. It is not known when the execution of this plan will start.
While it would not affect the online retail market share of Myntra and it’s major competitor Amazon India, Myntra would see an increase in competition against offline retail players internationally. On the other hand, the brand value of its private labels would increase, and so will their contribution to the revenue.
Further, it would be interesting how this conversation pans out and what the partial international expansion of Myntra has in store for the company and Indian e-commerce as a whole. Also, a development like this is one of the results of the huge deal, and it’s expected that there are more such surprises to come.