About a year ago, Myntra leveraged private brands to combat offline retail. Now, the online fashion retailer wants to push those same private brands offline?
A top level executive at Myntra, claims the marketplace will have its own offline store by the end of the year. In this physical store, it will sell its private brands and to get this plan in motion, it plans on gathering more private labels.
This he feels will boost their brands. But that’s not all, Narayanan also mentions that you can expect to see some of Myntra’s private brands in offline stores pretty soon. The ecommerce company is working hard to get these exclusive labels into actual brands everyone will know of.
The current private brands under the etailer are Dressberry, Roadster, HRX and Anouk.
Narayanan reveals, “We’re very close to finalizing (a deal) with a multi-brand retailer who will actually sell it (Myntra’s private brands) in offline stores. And likewise we will also create our own store which will go up I think in the November-December time frame—we will have it up and running at that time. It’s going to be an exclusive private brand store of Myntra.”
For the first time several of Myntra’s exclusive brands offered discounts, but Narayanan states this isn’t what distinguishes the etailer from the competitions. He says, “The real thing is that the selection that Myntra has is dramatically different from others. Even if you look at a brand such as Puma which everybody has, the selection that is available on Myntra is very different from that of Amazon. So, I think we’re going to differentiate on selection, not discounts.”
Even though the online retailer is a part of Flipkart’s ecommerce flagship, it wants to try differentiating itself. Myntra is trying to turn its marketplace into a platform for ‘mass premium brands’. To accomplish this, the etailer is carefully curating specific products from well-known brands. Instead of simply offering the widest range of products, Myntra wants to provide products that keep consumers coming back for more.
Myntra might be trying something new to widen its ecommerce market share but, will exclusive brands work for the etailer? Consultant firm Wazir Advisors managing director, Harmider Sahni says the US ecommerce market is different from India’s.
Harmider says, “India is a very different e-commerce market compared with the US—in the US, e-commerce players often get an edge over competition by launching exclusive products with exclusive brands. In the Indian market, even if you do end up coming up with a unique product, the market is not as homogenized as the US. While launching private labels will help companies, these labels are still competing with the major brands.”
If this actually works out for Myntra can we expect more offline stores from the Indian ecommerce company? Also, will it change the landscape of online fashion retail?