Myntra, the leading online fashion products retailer owned by Flipkart, has said that its private labels and brands business has turned profitable.
As per the company, its private labels have reached Ebitda (earnings before interest, tax, depreciation and amortisation) profitability of 5% since June.
The fashion retailer is also on track to grow its revenue by at least 50 percent this financial year to about ₹8,500 crore. It aims to hit an annual revenue run rate of $2 billion and touch overall profitability by the end of 2017-18.
Myntra, which currently has a portfolio of around 13 fashion brands, is expecting to double growth this financial year. The company has been building a formidable private label business, which currently accounts for nearly a fourth of its total revenues. Its private brands includes Roadster, Dressberry, Anouk and actor Hrithik Roshan’s HRX, among others.
Ananth Narayanan, chief executive of the company, said that this festive season, Myntra is looking to scale its network of close to 1,000 kirana stores, under a programme it calls ‘Mensa network’, to facilitate delivery and returns. He further adds:
This festive season, we have a series of regional events, for example for Durga Puja in the eastern states, Onam in Kerala, and Navratri in Gujarat. The app will be personalised based on pincodes. We will start with the festive season, and if it goes well, we will continue with it.
Myntra’s Fashion Brands are also present on Jabong, another online fashion retailer which was acquired by Flipkart. It contributes to about 7-8% of the latter’s total revenue, and a 30% overlap of customers on the two platforms.
Over the past year, Myntra has been trying to curb costs and has opted the way of reducing discounts. Ananth says that the biggest area of cost optimization for the company has been supply chain and predicting where inventory needs to be placed, so that the actual package travels less.
Myntra had launched a new sale event in April based on high fashion and minimal discounts as it sought to shift towards selling full-price products. Over the coming months, Myntra is expected to host at least another one or two of these full-price sale events.