April 3, 2014
After starting delivery services to Indian patrons through its global site, American lifestyle clothing retailer Gap is now inching closer to them by partnering with ecommerce portal Myntra. As per reports, talks are on to finalize a deal with Myntra to launch its online store in India.
It may be recalled that the largest casual wear retailer in the US is also said to be in talks with Arvind Lifestyle Brands to open brick-and-mortar stores in the country.
According to a Third Eyesight survey, eight US department stores and brands are currently shipping their products to India. Experts feel that this strategy being adopted by most foreign brands and retailers indicate their strategy to test the market before making a formal entry.
If the Gap’s deal gets through, Myntra may handle the operations of San Francisco-based Gap’s online store. Both offline and online stores may be launched simultaneously early next year. After securing funding from PE investors recently, Myntra is racing ahead to be the leader of India’s ecommerce store amid tough competition from rivals like Flipkart and Jabong. Sources say the fashion e-tailer, which is projecting sales (gross merchandise value) of around Rs 2,000 crores this fiscal, may also partner with the Dutch clothing brand Scotch & Soda.
The e-tailer, currently at half the sales figure of Shoppers Stop and Lifestyle, aims to match their figures in another 15 months. While on one hand, the portal is looking at becoming India’s largest retailer, on the other, it would utilize the raised amount to increase mobile-led services, while focusing on expansion of in-house fashion brands. The company aims to reach a turnover of Rs 1,500 crores in fiscal 2015 and grow to Rs 10,000 crores in the next three to four years.
(Sourced from Fashionunited.)