Myntra along with its partner, Barcelona-based fashion brand, Mango has opened its first bricks-and-mortar store in Delhi. The e-tailer had bagged omnichannel distribution rights of Spanish fashion brand Mango in February this year. As part of the alliance, the companies will set up 25 Mango stores in five years. The companies expect to see about 250 percent growth in business and a 50:50 split between online-offline sales in a year.
This is Myntra’s second such partnership: last week, it had bagged distribution and management rights of the international fashion brand Esprit, and will be managing 15 Esprit offline stores in the country over the next 5 years.
In this alliance, Myntra will back Mango with technology, for instance customers can browse the Mango collection on a tablet in its store, and check out product details and availability, and have goods from other stores delivered to their doorstep. These tablets will also be used to provide personalized recommendations based on purchase history, and inform customers about new products and styles. Customers will also be able to skip queues at billing counters, using the Assisted Checkout feature on tablets at the store.
While the initial stores will be in metro cities, Ananth Narayanan, CEO, Myntra and Jabong, said that further expansion of such stores will depend on browsing patterns of Myntra users.
Narayanan, said that the fashion e-tailer is looking out for more such partners for omnichannel presence in the country, however he did not share more details on the same. He said that Myntra is expecting 10-15% of business from such partnerships in the next five years.
Note that, Myntra’s private label business ‘Myntra Fashion Brands (MFB) and brands business turned profitable on an EBITDA level last month, and MFB contributed to about 23% of Myntra’s overall business.
Offline boosts Online
While offline apparel brands are tapping e-commerce for growth in India. E-commerce players are too getting bullish on offline presence. Narayan said that offline presence boosts online sales for an e-tailer. Citing its private label brand Roaster’s first offline store in Bangalore in March this year, the Myntra CEO said the online sale of the brand grew by 4% after the brick-and-mortar store opened up.
Two weeks ago, the e-commerce giant Amazon announced that it has picked 5% stakes in offline retailer Shoppers Stop. As part of the deal, Shoppers Stop will further expand its physical and online retail business, Amazon India will sell Shoppers Stop’s in-house brands on its marketplace through a dedicated microsite.
In January 2016, fashion e-tailer Yepme had launched its first brick-and-mortar store in the Delhi/NCR region.
In October 2015, Snapdeal introduced Janus, a multi channel platform to let users discover, buy, same day local delivery and get value added services across categories including apparel, such as demos, installation, activation and returns at a store near them.
As the market evolves, ecommerce players are realising that seeing is believing for many customers while purchasing products, and hence players like Myntra are looking at more offline stores going ahead. The many online-to-offline and offline-to-online tie-ups or omnichannel presence seems to be beneficial for both, e-tailer as well as retail brand, as they can leverage each other’s strengths.