Country’s largest fashion e-retailer, Myntra is eyeing to sub-franchise Mango stores in India. The online eCommerce company had bagged rights to manage online and offline franchise of Mango brand in India earlier this year and if the sources close to development are believed, the company is in talks with a few people to start working on the new model.
A report in ET mentioned that Myntra is in talks with Jaipur based Samarth Lifestyle and Delhi based G&B Fashion to give out the rights and very soon, it might be made official. Samarth Lifestyle in Jaipur manages over 100 outlets of popular international brands including Benetton, Tommy Hilfiger, US Polo, Puma, Lee, Wrangler and Calvin Klein and at the same time, G&B Fashion has 25 stores of Benetton in it portfolio. All the outlets managed by G&B fashions are within the NCR region.
Due to reasons like high capital expenditure and operation costs, Myntra is not very positive to start with mango stores in India. This very reason has prompted them to initiate talks with companies which have a good presence. Myntra reports that the sale of Mango apparels has increased over 25% after the deal between Mango and Myntra.
According to a Myntra spokesperson, the experiment phase of Mango stores will see Myntra investing all the initial cost in the stores and operation cost will be covered by the sub-franchise. In the phase two, Myntra will itself look for managing stores end to end.
Before this, Myntra had launched an experience store for the brand Roadster in Bengaluru and sources claim that the store hasn’t received the expected response and that is one of the reasons which has made Myntra initiate talks with others to manage the Mango stores. However, denying these claims, Myntra spokesperson told ET about the response being 2X of the expected one and that the store has performed way beyond the expectations in every aspect.