Strategic Franchise Deal Marks Ecommerce Giant’s Move into UK Fashion Market, Aims for Omnichannel Growth
Ecommerce behemoth Myntra has made significant strides in its international fashion endeavor by securing franchise rights for the UK’s premier fashion brand, NEXT.
The partnership between Myntra and NEXT underscores the ecommerce giant’s commitment to bolstering its presence in the global fashion landscape. With ambitions to expand its footprint across Asia, NEXT aims to leverage Myntra’s robust platform to compete with industry rivals such as Tata and Reliance.
According to reports, the collaboration will enable NEXT to penetrate the lucrative Indian market, leveraging Myntra’s extensive distribution network and wholesale business model. By partnering with independent franchise partners and distributors, NEXT aims to establish a strong foothold in India’s burgeoning fashion market.
Moreover, NEXT plans to capitalize on Myntra’s omnichannel capabilities to enhance its presence in India. The brand intends to launch a series of brick-and-mortar stores across key cities like Delhi, Mumbai, and Bengaluru, complemented by an online presence on Myntra’s ecommerce platform. These stores will offer a diverse range of apparel for men, women, and children, catering to the evolving preferences of Indian consumers.
Nandita Sinha, CEO of Myntra, expressed enthusiasm about the collaboration, emphasizing the strategic importance of deepening ties with NEXT. “We are excited to strengthen our partnership with NEXT and drive its omnichannel expansion in India. With our proven track record in elevating global brands in the Indian market, we are poised to unlock new growth opportunities for NEXT,” remarked Sinha.
The move aligns with Myntra’s broader strategy to tap into the growing demand for international fashion in India. Sinha revealed that 40% of orders for Myntra’s international brands originate from Tier II cities and beyond, underscoring the vast market potential across various demographics. With plans to attract 10 Mn GenZ users and expand its style offerings, Myntra aims to solidify its position as a frontrunner in the Indian ecommerce landscape.
The partnership with NEXT comes at a pivotal juncture for Myntra, following a 30% increase in net loss in the financial year ending March 31, 2023. Despite the financial challenges, the ecommerce giant remains steadfast in its commitment to driving innovation and expanding its market reach.
