Myntra targets Rs 1,500 cr annual sales. Here is its strategy to achieve it

If you want to stay at the top of the game you have to keep changing - that seems to be fashion portal Myntra’s mantra as the company announced a new branding and marketing campaign.

The_Economic Times_today reports that the e-commerce platform has signed on ad agencies Ogilvy India Worldwide and Lowe Lintas to direct the company’s rebranding strategies. The company is eyeing Rs 1,500 crore in yearly sales next fiscal, with the hopes of becoming a Rs 10,000 crore firm in the next three to four years.

In the spotlight will be some of the company’s in-house private labels, such as HRX in partnership with Bollywood actor Hrithik Roshan, which Myntra plans to sell in brick-and-mortar stores and other platforms. The report says the company is going to add to its own label collection by bringing in a kidswear and formal menswear collection in the next few months.

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Vikas Ahuja, the company’s chief marketing officer, believes some of Myntra’s private labels have the potential to be worth Rs 500 crore in a couple of years.

The major reason for etailers getting into private label seem to be margin as most of the etailers are selling branded products at thin margins. Also, private labels don’t incur the marketing and promotional expenses that are attached to brands. And in-house labels lend a lot of flexibility for the seller in terms of quantity of merchandise.

While Ogilvy will focus on the private-label branding, Lowe will handle the overall strategy for Myntra.

The step is just the latest in a line of decisions made by Myntra to stay ahead in the e-commerce game. Last month, the company announcedthat it would be expanding into the marketplace model, mimicking US giant Amazon’s business plan. This model allows online portals to cut costs by saving on expensive outflows like inventory-related costs.

Last month Myntra received an infusion of $50 million from a Premji Invest-led consortium. “The fresh round of funding will enable us to expand our operations to spur further growth with better infrastructure and proactive user-based technology,” Myntra co-founder Mukesh Bansal had said.

Research firm Forrester expects India’s online retail spending to grow at a compounded annual growth rate (CAGR) of more than 50 percent over the next five years and reach $16 billion by 2018, an eight-fold increase from 2013.

Read the entire_Economic Times_article here.