Myntra, which was acquired by Flipkart in 2014 for about $350 million, is by far the largest online fashion store in the country and an important weapon in Flipkart’s arsenal to maintain a lead over Amazon.
Roadster, which is now its largest private fashion label hit a run rate of Rs 500 crore in 2016 and is on track to clock Rs 600 crore ($100 million) by the end of this year.
EBITDA profitable MFB business at scale is a massive breakthrough for e-commerce in India, at a time when e-commerce is facing questions on losses and burns.
Myntra Fashion Brands will be roughly about United States dollars 300 million business, he said adding that “in some ways it is as big as stand-alone e-commerce sites, and we are actually profitable in that which is a tremendous achievement”. Our approach of building own brands makes us unique.
The company claims to have achieved this by leveraging machine learning and artificial intelligence, offering a wide range and high-quality fashion products, speeding up its supply chain, and identifying demand through better forecasting capabilities. It is expected to take some of its private brands, especially those promoted by celebrities, to some global markets in the next six months. “Moda Rapido” and “Here & Now” are the first of its kind to be completely conceptualized and designed using AI and ML. We see a huge potential here and would like to serve the private brand businesses around the world.
Also contributing to MFB’s success is HRX – the active wear brand with Hrithik Roshan and All About You – a premium women’s wear brand with Deepika Padukone. “We have identified white space opportunities over a period of five years to develop a clear proposition through labels, such as Mast & Harbour, Dressberry, Ether, Anouk, K&K, and so on”.
The Flipkart-owned fashion portal is also looking to curate several global brands as a separate online store on its platform and will see several brand launches. The team shared that five to seven national brands had already signed up with them on this programme.
Going forward, Myntra Fashion Brands will continue to invest in technology and design, along with marketing as it brings more of its brands into national brands that are sold not just on Myntra but on other storefronts too, Kamath said.