Attracting Branded Sellers to Digital Marketplaces
Now the major digital marketplaces are trying to attract international brands to their platforms. Its not just about getting as many sellers as possible onto your platform but also about getting recognised brands which is the next step.
Economic Times reports that Myntra CEO Ananth Narayanan in January will lead a team on a roadshow to various European and US cities to attract and enrol global fashion brands to sell their stuff on the ecommerce site to treble sales from international labels by mid-2017. The team will travel to New York, Chicago, Boston and San Francisco apart from cities in Europe.
"There are a few other spots that are generally not on the global fashion map (and they) are China and South Korea. They are interesting for us," said Narayanan, who became the first professional chief executive of the country's largest online fashion retailer after founder Mukesh Bansal moved to larger roles in parent company Flipkart. "We will also get some brands from there, and we are geared up early next year." Currently, Myntra's revenue from international brands is about 5% and it wants to increase it to 15% of its total revenue in the next 12-18 months.
Currently, Myntra sells more than 25 international brands, including Nike, Adidas, Puma, Lee, Levis, Arrow, Mango, Diesel, CAT, Harley Davidson, Ferrari, US Polo and Marks & Spencer. Myntra has been encouraged by the rousing response to its latest international offering of Forever 21 brand early this month that generated more than Rs 80 lakh on Day 1 itself. "It was almost 10x of what we normally do on Day 1 and it is very close to the number you mentioned," said Narayanan. "Our target consumer segment is little premium and, therefore, they like international brands. Myntra is well positioned for that. Forever 21 launch has proved it." Harminder Sahni, founder of retail consultancy firm Wazir Advisors, said Myntra being the market leader stands to benefit from India's rising appetite for global fashion products.