Flipkart owned fashion e-tailer Myntra has bagged distribution and management rights of international fashion brand Esprit. The e-tailer will manage its offline stores in India and will sell the brand’s products exclusively on Myntra, as well as on Myntra-owned Jabong. The e-tailer will be managing 15 Esprit offline stores in the country over the period of next 5 years.
This is Esprit’s second innings in India. The brand had previously forayed into India during 2000s through a distribution agreement with Madura Fashion and Lifestyle, but then exited India in 2012 after incurring heavy losses for several years, according to a Livemint report. It looks like that looking at e-commerce growth in India, the international brands are now betting big in India. This is Myntra’s second such deal, earlier in February, it bagged omnichannel distribution rights of Spanish fashion brand Mango.
Early this month, Myntra announced that its private label business ‘Myntra Fashion Brands (MFB) and brands business, has turned profitable on an EBITDA level. The company added that MFB contributed to about 23% of Myntra’s overall business. Overall, private labels reported a positive EBITDA margin of 5% in June 2017 and the company expects to generate revenue run rate of $300 million this year (from private labels) as per its forecast.
Myntra’s direct rival in the country is Amazon, which is quite bullish on India. This week, Shoppers Stop Limited entered into an Investment Agreement with Amazon.com NV Investment Holdings LLC to sell 43,95,925 equity shares or about 5% stake in the company for Rs 407.78 per equity share or Rs 179.25 crore. Shoppers Stop will be using the funds to further expand its physical and online retail biz, plus it tied-up with Amazon India to sell its in-house brands on the e-commerce marketplace through a dedicated microsite.