BENGALURU: Online fashion portal Myntra plans to launch 100 offline stores across cities in the next two years, encouraged by the impact of its first offline store, its top executive has said.
“The Roadster online sales have shot up after we launched the offline store,” Ananth Narayanan, CEO at Myntra-Jabong, said on the sidelines of the launch of the second Roadster store on Thursday. “This increase in sales have come from pin codes around the store and not from any other part of the city,” he said.
The Flipkart-owned entity expects to end the current fiscal year at $1.9 billion gross merchandise value run rate, up from $1.2 billion for FY18, riding on the back of private labels and offline expansion.
The company also eyes profitability, Narayanan said. The company is in the process of integrating warehouse inventory with store inventory for its in-house brands as well as other brands to provide customers a seamless online-to-offline experience and boost sales.
Of the 100 stores expected to dot the country in the next two years, 50 will be Roadster stores, followed by HRX and Mango, among others. Myntra has been focusing on its umbrella of private labels over the last few years and looks like its strategic focus helped the company reduce losses. Its losses reduced 25% in FY17 at ?655 crore against ?823 crore in the previous year, as per its financials.
Experts tracking the ecommerce space believe that offline foray is the next driver of growth for online players, albeit at a cost. “We believe that omnichannel is the way to go for ecommerce companies in India and this year will see a spurt of offline stores,” said Satish Meena, senior analyst with Forrester Research. “However, this will help companies garner more market share rather than attain profitability since offline foray comes with its set of capital costs.”
Myntra’s three-year-old private label business has been growing strongly and accounts for about 25% of the firm’s overall revenue, according to analysts. In September 2017, Narayanan announced that Myntra’s private label business, which includes brands Roadster, Dressberry, Anouk and HRX, had turned profitable.