Myntra eyes 10x growth over the next three years

Here’s a new step by Myntra…

Myntra, India’s leading destination for fashion and lifestyle online, announces the launch of its accelerator programme, according to a press statement. Through this initiative, Myntra is looking to forge strategic partnerships with about 10-15 local fashion brands who have a unique sense of design and a rigid backup force. The programme is designed to accelerate growth of these brands through technical knowhow, analytics and branding support from Myntra.

As a part of this program, Myntra has partnered with two brands- Chemistry and AKS and has five more brands in the queue. Chemistry is a leading women brand in the market, distinguishable for their unique designs. The company caters to about half a million customers present, which could translate into three million customers in the next three years, through this accelerator program by Myntra. AKS specialises in producing ethnic wear for modern day women. The brand has made a profit of $6 million annual GMV in three years. Expectations are high that a growth of 10X could be seen over the next three years.

Ananth Narayanan, CEO, Myntra-Jabong, said, “We believe that the next three-five years will see the emergence of many new national brands. As the leaders in the fashion & lifestyle space in India, Myntra and Jabong are well positioned to work closely with some of these emerging brands to propel them to the national stage. The brands will be able to leverage our core strengths – largest mass premium customer base and data driven insights on consumer, while also getting operational support.  We are looking at creating about $1 billion incremental valuation for the Myntra Accelerator brands over the next three years. We look forward to working with the best of Indian entrepreneurial talent in the brand building space”.

With fairly successful brands in its kitty such as Roadster and HRX, Myntra claims to possess the knowhow of creating brands that have the potential to be category leaders. Also, an online-first approach ensures that brands scale much faster and at better economies compared to an offline model.

Sunil Jhangiani, CEO Chemistry, said, “Being an offline brand with a strong foundation, our association with Myntra opens up a new world of opportunities for us in terms of reach, visibility and volumes through the online channel. Myntra’s expertise in building successful online brands over the years, backed by strong technological support will aid us in shaping the future of Chemistry and establishing it as one of the foremost fashion brands in the country. We expect the online sales to become 50 per cent of the brand sales in three-five years.”

Through this program Myntra plans to help partners to build their brands online through Myntra and Jabong and also leverage data from the 18 million monthly active users to get insights on customer behaviour and product assortments.

Nidhi Yadav, Founder, AKS added, “As an online-first brand, we started small with a passion for design and identity. By associating with Myntra, we are taking the first major step towards creating a national brand. Myntra’s ability to build brands through digital marketing, capture and provide insights on customer behavior and enable reach to 8 million+ women shoppers will be a game changer for our brand.”

How will Myntra’s new move influence the other fashion online players? Please share your views.