Top Story


Home >> Digital >> Article

Myntra-Jabong combine looks to cross $1 billion in sales by March 2017

Font Size   16
Myntra-Jabong combine looks to cross $1 billion in sales by March 2017

In few months of Jabong’s acquisition by fashion portal Myntra in the same domain, the latter is aiming combined net revenue of more than $1 billion by March’17. This instruction was given by Flipkart who now controls almost 70 per cent of total online fashion market in the country after the takeover. The e-commerce giant is looking to expand revenues in the shortest possible time with both Myntra and Jabong running as separate entities but would be leveraging each other’s strength wherever required. The net revenues of the two companies were estimated at $500 million last year, according to reports.

So with its sight on profitability which includes bringing in net revenue of more than $1 billion, according to media reports, Myntra already has its strategic moves in place. It is reported to move the research and development team of Jabong in Bengaluru to its own facility in less than two months of takeover. It had acquired Bengaluru-based mobile content aggregator Cubeit in July for an undisclosed amount and took a majority stake in clothing and shoes brand HRX, launched by actor Hrithik Roshan, to give a fillip to its private brands business. It has also tied up UK-based fashion retailer French Connection.

Recently to boost its international portfolio, Myntra has associated with Italian brand Love Moschino which is a younger counterpart of the internationally acclaimed Moschino. Now the fashion major houses over 30+ top global brands. The online retailer is also looking to build a combined omni-channel strategy that includes both online and offline services. So over a couple of months, Myntra plans to open brick-and-mortar stores to sell its private labels including Roadster, HRX and All About You, under Myntra Fashion Brands. While it’s reported that private labels accounted for 20 per cent earlier this year, Myntra is aiming to bring the share of these brands to 30 per cent by the end of current financial year.

With Myntra’s aggressive steps, Flipkart is betting big on fashion where it has the prerogative -- Myntra controls 70% of the online fashion retail market -- and the margins are as high as 50 per cent to turn the entire company profitable in the near future.  But Amazon, in an attempt to take its competitor heads-on in this high-margin space, has launched the first of at least six fashion private labels which it proposes to introduce this year. Called Symbol, it is launched by Cloudtail India, Amazon’s largest seller, through which the US e-commerce major is gearing up for the upcoming festive season.

Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions

Perfumes are invisible and these new ads from Skinn create a story out of this

New campaign aims at first-time users by providing ‘first-night free’ – a first-ever offering by the brand on online hotels booking