Myntra has announced a strategic partnership with Pernia’s Pop Up Shop, Purple Style Labs-owned luxury fashion retailer. This will enable fashion etailer’s customers to shop for designer wear with price tags of up to Rs 1.5 lakh.
Through this partnership, Myntra forays into the luxury segment. Now, about 25 Indian designer wear labels like Ritu Kumar, Masaba Gupta, Namrata Joshipura and Gopi Vaid will sell premium women’s apparel on the platform.
Ayyappan Rajagopal, Head of business, Myntra-Jabong, said, “The partnership will help in customer acquisition, increasing existing customer wallet share and gain market share. Fashion designers, who were limited to the large metros, will widen their reach with our distribution network.”
The new launch comes ahead of Myntra’s end of season sale as fashion shoppers prepare for the upcoming festive season. However, this development comes at a time when India is allegedly witnessing an overall economic slump that has led to a decrease in discretionary spend.
Women’s apparel market in India
In India, women’s apparel market is estimated to be Rs 150,000 crore in FY-20. The overall women’s ethnic wear category is growing at a CAGR of 60%.
About two-thirds of Myntra’s turnover comes from apparel, its single biggest category. This is followed by footwear, accessories and recent addition in kids and personal care. Women’s wear contributes to 35% of total platform sales on the platform.
The premium ethnic wear on Myntra’s platform has grown at 300% over the past year. The wedding wear’s demand is increasing and will likely contribute about 10% of ethnic wear revenue by next fiscal. The growth in demand for ethnic wear was a key driver to further premiumise its offering.
“Our Y-O-Y revenue from premium wear has grown by 3X. Searches for premium wear have grown by 4X. Our data does not hint at a slowdown. Ecommerce, overall, has performed well during this period as online platforms give good selection and attractive pricing,” Rajagopal stated.
Myntra raises its Average Selling Price by entering luxury space
Till now, Myntra’s portfolio of brands focussed on the high fashion market’s average selling price (ASP) as seen similarly on fashion platforms like Koovs and Ajio. With the entry into the luxury space with designer sarees, lehengas, gowns and kurta sets, the etailer has raised its ASP making its customers upgrade to higher value products.
The company, counting Karnataka, Maharashtra, NCR and Uttar Pradesh as its biggest markets, will also be working hand-in-hand with the fashion designers for increasing merchandise selection and depth over the next few weeks.