India Fashion Electronics Myntra Shares Star Brand

Recently, India fashion Online retailer Myntra is starting to buy. Shoes and clothing brand HRX majority stake, trying to promote its own high profit private brand business development. Myntra did not disclose the specific terms of the transaction, saying only that it would complete the transaction in the next few weeks.

Rajesh Narkar, vice president of Myntra fashion brand, said: "the company will open up the India sporting goods market with HRX brand advantage and provide more choice products for local consumers." HRX also pointed out: "Myntra's stake means that we can get more comprehensive analysis and customer preferences. This platform will bring greater impetus to our market development.

HRX insiders revealed that the company plans to expand the scale of the India line this year and is discussing the opening of an independent outlets. In the international market, HRX will expand to Western Asia. In this connection, HRX can help Myntra achieve its own development goals through data analysis, online channel strength and product self construction.

It is understood that at present, Myntra's own brand building has surpassed its parent company Flipkart and rival Jabong. Profits from private brands rather than third party brands are the main drivers of Myntra's profit plan in the next two years. Myntra plans to increase its private brand sales contribution from 20% to 30% in March 2017, and achieve the target of 500 billion rupees in the fiscal year.

EY enterprise Consultation Service Co market leader further explained the importance of Myntra's transaction. "Building private brands can bring higher profit margins on the one hand. On the other hand, it helps retailers to remain competitive and improve their marketing and brand promotion capabilities."

HRX brand, which focused on sporting goods and lifestyle shopping, was founded by actor Hrithik Roshan in 2013, and then sold to Myntra and Flipkart. Besides shoes and clothing, it also sells leather products, bags and other items.

Myntra, headquartered in Bangalore, was bought by Flipkart in 2014, and active users reached 8 million in Myntra. In January, Myntra realized an annual GMV of US $800 million, an increase of 70% over the same period. It is estimated that GMV will exceed US $1 billion in fiscal year 2016-2017. At present, it is reducing sales promotion efforts and reducing supply chain costs, and plans to make profits in the end of fiscal year 2016-2017.