Myntra to sub-franchise its offline Mango stores rights

Myntra, the largest online fashion player in the country, is signing up agreement with two players to sub-franchise the operations of offline Mango stores for which it had bid and won the rights earlier in the year. It is in discussions with Samarth Lifestyle and G&B Fashion for the deal. While the Jaipur-based Samarth operates more than 100 outlets of Benetton, Tommy Hilfiger, US Polo, Puma, Lee, Wrangler and Calvin Klein, the New Delhi-based G&B operates 25 outlets of Benetton in the National Capital Region.

The company claims that the sales of M products have surged 25% on its platform since it signed on the Spanish fashion and lifestyle brand in February early this year. A spokesman of the startup said that “We are using a hybrid model of retail and sub-franchisees where all the investments in the store will be borne by us and the day-today operations of the store will be managed by the sub franchisees. In phase two of the launch, Myntra will operate and manage a few Mango stores end-to-end”.

However, some analysts have different take on the company’s move. As per them, Myntra’s decision to let franchisees operate the Mango stores stems from the fact that its own entry into brick-andmortar retail a month ago with a Roadster-branded store has so far received a lukewarm response.