Myntra launches first offline store in Bengaluru to push private label brand
Nearly seven months after Myntra announced its intent to go offline, the Flipkart-backed online fashion and lifestyle e-tailer has launched its first offline store in Bengaluru.
The 4,000 sq ft store, which will be open to the public tomorrow, would be an exclusive store for what Myntra claims to be its biggest as well as fastest growing private label brand, Roadster. The store is being been positioned more as an experience centre rather than a significant revenue generator.
Myntra is operating the offline store on a franchise model by partnering with a retail vendor, whose identity the company did not disclose. The company also refused to divulge whether the partner is an existing vendor.
"The idea is to create an integrated omnichannel experience and showcase the Roadster brand. We will also view this as an experiment to use the insights and experience gained from this setup and apply this to our other brand partners," Ananth Narayanan, chief executive of Myntra and Jabong said.
To generate footfalls and lure customers to its offline centres, Myntra has integrated technology and gamification elements into the store.
This includes a video wall that showcases details of Roadster products along with fashion content, a multitaction feature that shows the merchandise being created, virtual reality headsets that take consumers on a virtual road trip, and multiple touch screen displays which provide data on the Roadster catalogue. Users can also use the interactive touch screens to place orders for their product online and get it delivered either to the store or their residence.
Narayanan said that generating footfall was an offline centre's biggest challenge and the significant technology integration was one way of incentivising the consumer experience. Besides, Myntra also plans to use proximity-based targeted ads and the store will double up as a pick-up point for orders placed online and a drop-off centre for product returns by customers.
Launched in 2012 by Myntra, Roadster is fashion e-tailer's most profitable private label and has reached a run rate of Rs 500 crore in 2016 and according to the company's claims, is expected to achieve a run rate of Rs 1,000 crore by FY19. Myntra has a total of 14 brands, including Roadster, under its private label category such as Moda Rapido, DressBerry, Yellow Kite, Kook N Keech and Invictus among others.
Narayanan said that he expected private labels to contribute to 21% of Myntra's total revenue by 2017, 25% by 2018 and 30% by end of 2019. In August last year, Myntra acquired a majority stake in film actor Hrithik Roshan's HRX brand to boost revenue from private labels.
According to Narayanan, the brand is currently at a Rs 120 crore run rate.
Ever since Myntra acquired Jabong for $70 million in an all-cash deal last year, the fashion e-tailer is currently perceived as the market leader in the online fashion and lifestyle category, accounting for nearly 70% of the market share by various estimates.
In its recently concluded end-of-season sale, Myntra claims to have registered sales of over Rs 850 crore ($126 million), including those from its recently acquired unit Jabong, which saw the online fashion retailer hit an annual revenue run rate of $1.6 billion during the month.