Myn­tra to Foray into Home Fur­nish­ing and Jewellery

Flip­kart-owned on­line fash­ion mar­ket­place gets into new seg­ments to shore up prof­its, while startup fash­ion por­tals plan ag­gres­sive ex­pan­sion Move part of co’s ini­tia­tive to ex­pand consumer base for at­tain­ing prof­itabil­ity by 2017

The Economic Times - - Brands: Creating Desire - Richa.Ma­hesh­wari @times­

Ben­galuru: Flip­kart-owned on­line fash­ion mar­ket­place Myn­tra is di­ver­si­fy­ing into home fur­nish­ing, pre­cious and non-pre­cious jewellery and per­sonal care seg­ments in an at­tempt to widen its consumer base and shore up prof­its.

Myn­tra had re­stricted its pres­ence to ap­parel and ac­ces­sories, but will now take on fo­cused play­ers in the space such as Ur­ban Lad­der, Pep­perfry, Nykaa and Blue­stone.

“This is a big bet for us to take our first step to ex­pan­sion in the life­style seg­ment, which will also help us meet our set tar­get of at­tain­ing prof­itabil­ity by 2017,” said Ananth Narayanan, CEO at Myn­tra, adding the com­pany ex­pects rev­enues of .₹ 500 crore from the home fur­nish­ing seg­ment in the next two years. The com­pany has tied up with 40 brands for the home fur­nish­ing seg­ment, and will en­ter the per­sonal care prod­ucts space and jewellery seg­ments by July. “In all th­ese cat­e­gories, we will be look­ing at mass pre­mium seg­ment where the mar­gins are high, so it works for unit-eco­nom­ics,” said Narayanan.

Sources said Myn­tra was toy­ing with the idea of sell­ing home fur­nish­ings and pre­cious jewellery nearly two years ago, but de­cided not to ven­ture into the space as home fur­nish­ing was high on lo­gis­tics costs and had low re­peat or­ders. Also, the pre­cious jewellery cat­e­gory de­manded hi-tech fea­tures such as live chats and more, which they didn’t have then.

Ac­cord­ing to in­dus­try an­a­lysts, home fur­nish­ing is a .₹ 3,000-crore cat­e­gory and is grow­ing at 70% year-on-year. The es­ti­mated size of the do­mes­tic jewellery and bul­lion mar­ket in In­dia is be­tween $30 bil­lion and $40 bil­lion, re­spec­tively, and on­line sales of fash­ion and fine jewellery com­bined stood at $150 mil­lion in 2015.

Myn­tra has tied up with 40 brands for the home fur­nish­ing seg­ment, and will en­ter the per­sonal care and jewellery seg­ments by July

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.