Myn­tra Picks Up Mango for Its Jour­ney Off­line

In­dian fash­ion e-tailer will man­age the re­tail out­lets of Span­sih mar­quee la­bel Mango in In­dia and will ac­quire ex­clu­sive on­line rights for it

The Economic Times - - Brands: Creating Desire - En­tire off­line deal will be fi­nalised in the next six months

Richa Ma­hesh­wari & Ra­sul Bailay

Ben­galuru | New Delhi: Myn­tra, the coun­try’s top player in on­line fash­ion busi­ness, is en­ter­ing off­line re­tail space hav­ing bagged the rights to man­age brick-and­mor­tar out­lets of Span­ish fash­ion la­bel Mango in In­dia along with ex­clu­sive on­line rights. The Flip­kart-owned com­pany will ac­quire eight Mango out­lets from cur­rent fran­chisees Ma­jor Brands and DLF Brands, and man­age omni-chan­nel strat­egy of the global fash­ion brand.

“This will be in a hy­brid model be­tween a sub fran­chisee and re­tail man­aged purely by Myn­tra,” said Ananth Narayanan, CEO of Myn­tra and Jabong. “In the next six months we will fi­nalise the en­tire off­line deal. The aim is to kick start pre-Di­wali,” he said while re­fus­ing to dis­close fi­nan­cial de­tails of the deal.

She­fali Singh, vice pres­i­dent - in­ter­na­tional busi­ness at Myn­tra, will spear­head this ini­tia­tive.

A se­nior com­pany of­fi­cial said Myn­tra aims to open 25-30 Mango stores over the next five years.

Ex­perts said the deal will help the ecom­merce ma­jor de­risk its busi­ness from on­line-only fo­cus. Myn­tra is also plan­ning to build an off­line pres­ence for its pri­vate la­bels, and a Road­ster out­let is due to launch early next month. The ecom­merce ma­jor had ear­lier un­suc­cess­fully tried to ac­quire the store net­work of US brand For­ever 21, which it lost to Aditya Birla group.

Mango, once a pioneer of global women fash­ion in In­dia af­ter its en­try in 2001, lost out to com­pe­ti­tion from Zara and H&M amid ma­jor dif­fer­ences be­tween the Span­ish own­ers and lo­cal fran­chisees over ex­pan­sion, brand rep­re­sen­ta­tion and store size. “When you have 18000 SKUs per year, the ra­tio­nal ap­proach is to use more space,” said Daniel Lopez, vice-chair­man of Mango. “So when you want to grow dra­mat­i­cally as we can, we need to think out of the box,” he said.

The com­pany will fo­cus ex­clu­sively on women’s wear in the first two years and olny later roll out men’s and kids cat­e­gory in the off­line stores. By 2021, as much as 55% of Mango’s turnover in the coun­try is ex­pected to come from on­line por­tals of Myn­tra, Jabong and Myn­tra will take over In­dia ecom­merce op­er­a­tions of early next year. Now, it is pow­ered by Mango global. Harminder Sahni, founder of re­tail con­sul­tancy firm Wazir Ad­vi­sors, said DLF isn't too keen to in­vest in th­ese busi­nesses any­more and wants to fo­cus only on Mother­care, the Bri­tish brand with which it has a tie-up in In­dia. “They (DLF Brands) are giv­ing away brands. The part­ners feel that clearly now, as the com­pany is bring­ing fo­cus back to real es­tate,” he said. DLF Brands had ac­quired the fran­chise for Mango in 2011 with an agree­ment to ex­pand and open new stores in In­dia. In the past, DLF Brands had ex­ited its joint ven­tures with Ital­ian fash­ion houses Gior­gio Ar­mani and Sal­va­tore Fer­rag­amo.

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