Published on January 6, 2017
1. wwww.etailingindiaexpo.com eCommerce Fosters Fashion Retail Startups In India Myntra, the country’s largest fashion ecommerce company, is reviving an incubation programme aimed at providing 10 small brands with technical, design and financial support, targeting about $500 million worth of business from them in the next five years. #DigitalErra Thought Corner Myntra’s chief executive officer Ananth Narayanan said a Myntra team of more than 40 designers and the company’s rich consumer data would help small brands scale up their businesses. “We know what consumer preferences are and we are able to translate into better designs. Therefore, the design success rate is much higher,” he said in an
2. wwww.etailingindiaexpo.com interview. “We supply to 19,000 pin-codes the day we launch the brand.” In the past as well, online companies such as Amazon, Myntra, Snapdeal, Indianroots and FashionAndYou have partnered with numerous designers who were once, struggling to sell exclusive lines. Previously, Amazon India launched its designer store to divert traffic from individual sites and had roped in talented designers onto its platform. Myntra, on the other hand, had expanded its design store portfolio by offering incubation programme for designers/ startups to design specifically for online audiences. Designers now get their 90% of business from online channels. A surprising fact is much of the demand for designer wear comes from tier2 and 3 cities. The best part of these incubation programmes is that the startups are working closely with major eCommerce firms to bring special assortment which is affordable by a larger audience.
3. wwww.etailingindiaexpo.com Stable Funding Scenario Even though most of the sector got bitten by funds scarcity in 2016, several fashion startups including 6Degree, Blinge, Shopwati, Hoppingo and Coutloot raised funds from investors that include Venture Catalysts, ex-Flipkart CBO Ankit Nagori, IAN and others. Tiger Global- backed fashion discovery app Roposo raised $5 million in the second round of funding in April from Bertelsmann India Investments.
4. wwww.etailingindiaexpo.com More Fashion Players Zooming on Earlier, it was just the online biggies including Amazon India, Koovs, Flipkart, Myntra and Jabong that were trying to cash in on the high- margin fashion business. But now, the market is seeing renewed activity with entry of specialized players such as Aditya Birla Group's Abof, Reliance Industries' Ajio and Arvind's NNNow, apart from several small-scale startups. Need For Brand building Today India is bubbling with opportunities. The business environment is both competitive and conducive at the same time. Brand building is on the minds of most entrepreneurs today. Given the pace and scale at which most ventures today operate, navigating through opportunities can be a challenging task for the entrepreneur. Incubation programmes creates and manages brands by providing expert teams across disciplines and providing network of resources that will help entrepreneurs realize their ambitious plans. Conclusion Ecommerce majors are helping startups with multiple content and product expertise along with incubator funds which impacts startups growth trajectory through business and brand incubation. *Image Credits : Economic Times