Myntra and Jabong to consolidate their backend logistics for stronger integration

Myntra and Jabong, the fashion e-commerce players part of Flipkart umbrella, is planning to merger their back-end operations and supply chain for stronger integration and resource optimization, however, the customer end i.e. website and sales/marketing positioning will continue to remain differentiated. Myntra and Jabong combined command a 45% market share in the vertical. Along with parent company Flipkart, their share in the fashion segment is pegged at about 75%.

Ever since the $70 million acquisition of Jabong, Myntra has been trying to leverage Jabong for better business processes optimization. Gunjan Soni, Head of Jabong and Chief Marketing Officer at Myntra, said that “We will be launching Myntra brands such as Dressberry, Roadster, HRX, and Mast & Harbour among others. We are also looking to revive some of the exclusive private labels of Jabong such as Sangria and Miss Bennett London. Myntra logistics will also be one of the partners for Jabong which already uses Ekart for shipping. The platforms will also look at interoperability of technology apart from private collections”.

Myntra has been gaining market share on the back of its private labels too. It launched its first physical store for its private label Roadster which has a current run-rate of INR600 crore, and expects to reach INR1,000 crore of sales by 2019, while another of its large private labels HRX is at INR120 crore. Private labels will contribute to 21% of Myntra’s business in FY17.