Flipkart-owned online fashion retailer Myntra’s private labels vertical is now operationally profitable, growing faster at 100 percent y-o-y growth compared to the overall platform, Myntra and Jabong CEO Ananth Narayanan told reporters at a press briefing today.
The private label vertical, which currently accounts for about 23 percent of Myntra’s overall business, is expected to reach 25 percent by the end of FY18.
The private labels vertical is expected to be worth USD 300 million by FY18-end, compared with USD 115 million it posted last year.
This would help Myntra’s in-house brands portfolio to post a double-digit operating profit margin in the next 18-24 months, Narayanan added.
“Myntra fashion brands (MFB) is a key pillar of Myntra’s strategy to build differential offerings, cementing customer loyalty, and increasing profitability. MFB today occupies 9 of the top 20 brands on the platform,” he said.
Myntra currently runs 13 private labels, of which, Roadster is the largest worth about USD100 million, followed by Mast & Harbour, and HRX that are worth about Rs 170 crore.
“We have identified white space opportunities over a period of five years to develop a clear proposition through labels such as Mast & Harbour, Dressberry, Ether, Anouk, K&K, and so on. These are groomed to be scaled to the next level like a national brand,” Narayanan said.
Two of its private labels – Mast & Harbour and Dressberry – have been identified to be promoted as a national brand, and the investments to scale it up will be made next year, the company said.