E-tailers launch in-house fashion collections for growth

Fashion is a high-margin business and witnessing rapid growth in the

category, online retailers are launching their exclusive private labels to woo customers. Not only leading e-platforms like Flipkart and Myntra, but even several specialised portals are unveiling in-house fashion and accessories created exclusively for online buyers.

Web portals such as DoneByNone, Koovs, Shopninteen and StyleTag make their own collections of trendy clothes at affordable prices. Such designs are launched in limited numbers almost every week to grab eyeballs. Fast and fresh fashion approach helps in luring customers. Another advantage of selling in-house collection, say experts is, since sites design, manufacture and retail their own brand of fashion and apparel, they have a greater control over the process and are able to earn better margins.

Experts point out that the margins earned through private labels can be up to 60 percent, while branded apparel can contribute up to 45 percent. This is much higher than the margins that online sites earn for electronics, which are typically less than 10 percent.

No wonder, leading portals like Flipkart launched its in-house apparel and fashion label Flippd recently. And fashion category player Myntra already has private original brands like Roadster, Dressberry, Kook n Keech, Mast & Harbour, Anouk and HRX launched in association with actor Hrithik Roshan. Koovs .com, which sells lady's shoes, handbags, accessories, watches and perfumes, listed its stock on the London's AIM exchange with a 26 per cent premium. The company launches more than 200 styles in its private label brand every week. Another portal, Shopninteen.com launches over 100 styles every 15 days at affordable price points. The private label chain manages its manufacturing and logistics operations in-house to control quality and achieve faster turnaround of clothing.

According to a recent Assocham report, India's e-commerce market was worth about 2.5 billion dollars (Rs 15,612 crores) in 2009, it went up to 6.3 billion dollars (Rs 39,343 crores) in 2011 and to 16 billion dollars (99,880 crores) in 2013 and is expected to touch a whopping 56 billion dollars (Rs 3,49,720 crores) by 2023 which will be 6.5 percent of the total retail market.