Chemistry, AKS on Myntra

Myntra has formed brand partnerships with two women’s apparel brands—western wear brand Chemistry and ethnic wear brand AKS. As part of its brand accelerator program, Myntra is aiming at roughly 500 million dollars in gross sales from up to 15 such brands over the next three years. Myntra will pick up equity in these brands based on their sales performance over the next few years.

Myntra expects to sign five more such partnerships within the next month. In all, the company plans to invest in 15 brands in sportswear, men’s casual wear and women’s wear. Myntra selects these brands based on their design aesthetics and the talent of the team behind the labels.

Myntra wants to create a portfolio worth a billion dollars over the next three years with the brand accelerator program. The brand accelerator program is part of Myntra’s efforts to shift sales away from discounts, differentiate its platform. Brand partnerships signed through the accelerator program will separately account for five to ten per cent of the firm’s sales within three years. If successful, this means that up to 40 per cent of sales would come from products that are available only on Flipkart-owned platforms.

Myntra is owned by Flipkart. With the brand accelerator, Myntra adds more unique products for customers, increases its exclusive offering and gets higher margins.