Myntra: Myntra To Foray Into Offline Retail Segment With Mango Brand
Myntra, the country’s top player in on-line fashion enterprise, is entering offline retail space having bagged the rights to manage brick-and-mortar shops of Spanish fashion label Mango in India along with unique on-line rights.
The Flipkart-owned firm will acquire eight Mango outlets from current franchisees Major Brands and DLF Brands, and handle omnichannel technique of the global vogue model.
“This might be in a hybrid mannequin between a sub franchisee and retail managed purely by Myntra,” mentioned Ananth Narayanan, CEO of Myntra and Jabong. “In the subsequent six months we’ll finalise the whole offline deal. The intention is to kick begin pre-Diwali,” he mentioned whereas refusing to disclose financial details of the deal.
Shefali Singh, vice president — worldwide enterprise at Myntra, will spearhead this initiative.
A senior company official said Myntra aims to open 25-30 Mango stores over the subsequent five years.
Experts said the deal will help the ecommerce major derisk its enterprise from onlineonly focus. Myntra can be planning to construct an offline presence for its personal labels, and a Roadster outlet is because of launch early subsequent month.
The ecommerce major had earlier unsuccessfully tried to acquire the shop community of US model Eternally 21, which it misplaced to Aditya Birla group.
Mango, once a pioneer of global women vogue in India after its entry in 2001, misplaced out to competition from Zara and H&M amid major differences between the Spanish homeowners and local franchisees over growth, brand illustration and retailer measurement.
“When you’ve 18000 SKUs per yr, the rational approach is to make use of extra space,” mentioned Daniel Lopez, vice-chairman of Mango. “So once you wish to develop dramatically as we are able to, we have to suppose out of the field,” he stated.
The corporate will focus exclusively on women’s wear in the primary two years and later roll out men’s and youngsters category in the offline shops.
By 2021, as a lot as fifty five% of Mango’s turnover salvatore ferragamo mens outlet within the country is anticipated to come from on-line portals of Myntra, Jabong and Mango.com. Myntra will take over India ecommerce operations of Mango.com early next 12 months. Now, it is powered by Mango world.
Harminder Sahni, founding father of retail consultancy agency Wazir Advisors, said DLF is not too eager to spend money on these companies anymore and wants to focus only on Mothercare, the British model with which it has a tieup in India. “They (DLF Brands) are giving away brands. The companions feel that clearly now as the company is bringing focus back to real property,” he mentioned.
DLF Manufacturers had acquired the franchise for Mango in 2011 with an agreement to broaden and open new stores in India. Previously, DLF Brands had exited its joint ventures with Italian vogue houses Giorgio Armani and Salvatore Ferragamo.