A quick scan of the fashion etailers in the wake of the Myntra–Jabong takeover has some interesting revelations. The reaction one would expect is a perturbed set of players as the combined strength of Myntra, Jabong and Flipkart’s fashion arm can add up to a strong contender. However, Voonik, Limeroad and Craftsvilla are not threatened.
Sujayath Ali, Voonik’s CEO explains
“The value and mid-priced segments command 75% of the market, with the remaining split between the premium and luxury segments. Myntra and Jabong don’t have a play in the value and mid-priced segments. Therefore, (the merger) doesn’t make much of a difference to us.”
Suchi Mukherjee, Limeroad’s CEO, points out that the fashion industry is massive, and the online sector has only managed to scratch the surface.
“India’s apparel and lifestyle market is a $70-billion industry, and 2% of that is currently online. That number is much bigger for China and the US. We have a long way to go,” says Mukherjee.
The companies also have plans for their customers. Limeroad has introduced a menswear segment. Craftsvilla is looking at its initial public offering (IPO) in 2018, says CEO Manoj Gupta. Voonik plans to introduce premium and luxury products.
Ecommerce experts are of the opinion that the Myntra-Jabong marriage is not going to create much of a ripple. Gagan Chauhan, senior business analyst at Red Seer Consulting says,
“Smaller marketplaces like LimeRoad and Voonik have a differentiated play. The Myntra-Jabong deal is unlikely to change their market shares by much.”
Harminder Sahni, MD at Wazir Advisors says that the acquisition is a bid to minimise Myntra’s competition. Sahni says,
“Jabong and Myntra have been going after the same set of customers. One of the reasons behind the acquisition could be to protect Myntra’s interests, so that Jabong as a brand does not rest with competitors, including offline multi-brand outlets looking at an online presence.”
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