Myntra: Myntra To Foray Into Offline Retail Segment With Mango Brand
Myntra, the country’s prime player in on-line fashion enterprise, is coming into offline retail area having bagged the rights to handle brick-and-mortar outlets of Spanish vogue label Mango in India along with exclusive online rights.
The Flipkart-owned firm will acquire eight Mango outlets from current franchisees Main Brands and DLF Brands, and handle omnichannel strategy of the worldwide fashion brand.
“This shall be in a hybrid mannequin between a sub franchisee and retail managed purely by Myntra,” stated Ananth Narayanan, CEO of ferragamo meaning Myntra and Jabong. “In the subsequent six months we are going to finalise the whole offline deal. The goal is to kick ferragamo meaning begin pre-Diwali,” he said while refusing to disclose monetary details of the deal.
Shefali Singh, vice president — international business at Myntra, will spearhead this initiative.
A senior company official said Myntra aims to open 25-30 Mango stores over the subsequent five years.
Consultants stated the deal will help the ecommerce major derisk its enterprise from onlineonly focus. Myntra is also planning to build an offline presence for its non-public labels, and a Roadster outlet is because of launch early subsequent month.
The ecommerce main had earlier unsuccessfully tried to acquire the shop network of US brand Eternally 21, which it misplaced to Aditya Birla group.
Mango, once a pioneer of worldwide women style in India after its entry in 2001, lost out to competition from Zara and H&M amid main differences between the Spanish owners and native franchisees over expansion, brand representation and store dimension.
“When you may have 18000 SKUs per 12 months, the rational method is to make use of extra space,” said Daniel Lopez, vice-chairman of Mango. “So when you need to develop dramatically as we can, we need to think out of the box,” he mentioned.
The company will focus exclusively on women’s put on in the first two years and later roll out men’s and youngsters class within the offline shops.
By 2021, as a lot as 55% of Mango’s turnover in the nation is anticipated to return from online portals of Myntra, Jabong and Mango.com. Myntra will take over India ecommerce operations of Mango.com early next yr. Now, it’s powered by Mango international.
Harminder Sahni, founding father of retail consultancy firm Wazir Advisors, mentioned DLF is not too eager to invest in these companies anymore and needs to focus solely on Mothercare, the British model with which it has a tieup in India. “They (DLF Brands) are giving freely brands. The partners really feel that clearly now as the company is bringing focus back to real property,” he stated.
DLF Manufacturers had acquired the franchise for Mango in 2011 with an agreement to develop and open new shops in India. Up to now, DLF Brands had exited its joint ventures with Italian style houses Giorgio Armani and Salvatore Ferragamo.