To push its profits, Myntra, an app-based fashion retailer, is counting on its in-house brands at the time when local e-tailers are under stress to chop off their cash burns and earn some profits.
Among more than dozen of Myntra’s own labels, Roadster, one of the top selling brand, in this year, clocked sales of Rs. 320 Crore and eyes to become Rs. 650 Crore ( $100 million) brand by 2016. After Roadster, brands such as Dressberry, All About You, and HRX are the highest grossing in-house labels.
Acquired by Flipkart last year, Myntra clocks more than Rs. 700 Crore in sales from all its in-house brands and is geared up to end the year at $550 million in GMV (Gross Merchandise Value).
Focussing on in-house labels online, Myntra has put its labels in direct competition with brick and mortar stores such as Lifestyle, Shoppers Stop, Spencers and Future Group.
According to Anant Narayanan, Myntra’s CEO, by 2016 the firm expects to collect in around Rs. 2000 Crore from its in-house brands, a timeline when it plans to strike Rs. 6500 Crore ($1 Bn) in GMV.
Considering the leadership position Myntra enjoys in the fashion and lifestyle market, experts said that a successful private label strategy will allow the e-tailer to benefit from the margins in the range of 40-50%.