By Archana Sharma and Nikhil Pahwa
Arvind Internet, the e-commerce arm of textile company Arvind Ltd, plans to invest $10 million in its newly launched omni-channel venture NNNow.com, which it had launched earlier this month. It expects the digital business to contribute Rs 600- Rs 900 crore ($89-134 million) revenue in the next three years, accounting for 10-15% of business, according to The Economic Times.
Interestingly, in its earnings release, Arvind talks about NNNow as being an attempt “to move away from the discount driven e-commerce market to a brand led shopping journeys.” Arvind’s brands include Flying Machine and Excalibur, and it also has rights to sell global brands like Nautica, Calvin Klein, Gap, Tommy Hilfiger, Gant, Arrow, and US Polo Association amongst others. It has a 50% joint venture with Tommy Hilfiger. There’s no mention of how much it earns from online sales.
A spokesperson for the company, when asked by MediaNama, declined to comment how much they plan to invest in the business. Arvind Ltd’s Executive Director Kulin S Lalbhai told ET that the company will focus on talent and marketing, in terms of investment in the first year. For the new omni-chanel, they’re looking at a model which allows customers to order online and pick up clothes from any one of the companys 1200 retail stores, or delivered home.
Arvind Internet also owns another online omni-channel Creyate.com, which was launched in August 2014.
Following a report that Arvind Ltd might be in the process of buying online fashion label FreeCultr, the company sent a statement to the BSE saying that it constantly evaluates proposals for inorganic growth, and will inform the BSE if the proposed acquisition is material. That’s neither a confirmation nor a denial of the news. In its investor presentation for May 2016, Arvind Ltd says that it is looking to add niche brands that add value to NNNow.com. The strategy for NNNow is, to have “express delivery, endless aisles, convenient returns”, and it views the opportunity as the digitization of its existing brand stores – an official store – and is eying the opportunity for creating own brands and select brands in the category.
- Last week, Tata Unistore has announced that it will launch Tata CLiQ, an e-commerce platform under the Tata Group, on 27 May on web, mobile web and Android and iOS apps.
- In April, Mukesh Ambani owned Reliance Industries launched its fashion e-commerce portal called Ajio.com under its Jio brand. Reliance Retail also retails multiple brands in speciality stores, and also runs online stores for them.
- In October 2015, Aditya Birla launched an online fashion portal called abof.com that lists clothing and accessories for men and women, both from Aditya Birla’s brands as well as curated clothing from other brands.
- In October 2014, Raymond Limited has launched its official online store RaymondNext.com, one-stop e-commerce platform for all Raymond brands and services.