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Myntra’s private-label biz turns positive

In a recent development in the fashion and lifestyle business segment, Myntra’s private-label biz brands portfolio delivers an encouraging 23 per cent of the e-tailer’s business and it has turned EBITDA positive in the last two months. As a matter of fact, this is the first step in Myntra’s journey to achieving overall profitability in the January-March quarter of 2018. The e-tailer expects the private-label business to deliver 35-40 per cent of its overall business in the next 18 months. “Myntra Fashion Brands (MFB) with a portfolio of 13 brands has grown from a $150-million business to deliver $300 million this year at 100 per cent CAGR (compound annual growth rate),” said Ananth Narayanan, CEO, Myntra and Jabong. “Our private brands registered a positive EBITDA of 5 per cent in June, putting it on a path of double-digit EBITDA profitability at scale, during the last quarter of this fiscal. MFB is a key pillar of Myntra’s strategy to building differentiated offerings, and occupies nine of the top 20 brands on the platform.” Myntra brands at present also contribute 7-8 per cent to Jabong’s sales, he said. Over 50 per cent of Myntra’s business comes from brands that have been built over a period of five years. Denim and casual wear brand, Roadster, the largest brand on Myntra, has achieved a run rate of over ₹600 crore; while Mast & Harbour and HRX brands are at a run rate of around ₹160-170 crore each. Moda Rapido and Here&now brands, which the firm claims to be the first of its kind to be completely conceptualised and designed using artificial intelligence and machine learning, are the fastest-growing and most profitable brands in the MFB portfolio. Myntra opened its first physical retail store for Roadster in Bengaluru this March.

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