Some say online fashion is at its saturation point, while other believe it will soon be the next big category in ecommerce. By 2020 the online fashion industry is expected to be worth $35 billion with a growth of 65%. The online fashion category looks very promising. However, it is an expensive category to sell under.
To help small fashion brands flourish, online mega fashion portal, Myntra, has decided to bring back its incubation programme. In 2014, the programme was called the Myntra Fashion Incubator.
With regards to the program, Myntra’s CEO, Ananth Narayanan said, “We had never shelved it but it sort tapered off.”
What does the incubator program do?
The revived incubator program is aimed to provide technical, financial and design support to 10 small brands. The program is expected to derive business worth $500 million from the incubated brands in the next 5 years.
The ecommerce company has put together a team of 40 designers and is utilising its rich consumer data to help small brands develop their online fashion businesses and elevate to new heights, Narayanan stated.
In an interview he mentioned, “We know what consumer preferences are and we are able to translate these into better designs. Therefore, the design success rate is much higher.”
He also said, “We supply to 19,000 pin-codes the day we launch the brand.”
Previous incubated brand
“We are happy to partner with them (new small brands) like we did for HRX. We are happy to buy into them, handhold them, give them ideas on designs,” said Narayanan when talking about the incubated brands programme.
Hrithik Roshan’s brand HRX began in 2012 and was exclusively sold on Myntra in 2013. Last year, Myntra obtained 51% stake in the brand while the founder and his co-promoter Exceed Entertainment maintained 49% stake in HRX.
Myntra will be using its online retail acquisition, Jabong, as well to increase the presence of its incubated brands. Recently, the company announced it Gurgaon teams would be moving in with Jabong for the matter of convenience. Now that the two are hosting combined sales and joining revenues, other fashion etailers can expect double the trouble in fashion ecommerce.