By Radhika P Nair
Myntra, a fashion portal, has roped in advertising agencies Lowe Lintas and Partners and Ogilvy India Worldwide to spearhead its marketing strategy in a bid to maintain its leading position as an online apparel retailer.
The Bengaluru-based company will also create separate brand identities for a few of its in-house labels that it plans to sell on other portals and offline stores, as these will provide higher margins. While Ogilvy will focus on the private-label branding, Lowe will handle the overall strategy for Myntra.
Companies such as Flipkart and Myntra are vying for a pie of an overall online retail industry worth more than $3 billion ( 18,000 crore). Lifestyle, including fashion, accounted for 35% of the industry. Myntra aims to be a 10,000-crore firm in the next three to four years and is targeting 1,500 crore in sales during the next fiscal year.
“A couple of our private labels have become quite large and we will now create a brand identity for them beyond Myntra,” said Vikas Ahuja, Myntra’s chief marketing officer. “They will also be available in other online and offline stores by end of the year.” Some of the private labels in the company’s stable have the potential to become a 500-crore brand in two years, Mr Ahuja said.
The company is also finalising kidswear and men’s formalwear ranges to be unveiled in the coming months. A private label is a range of products manufactured and sold by a multi-brand retailer. While third-party apparel brands provide margins of between 30% and 40%, in-house labels can provide over 60%.
Mr Ahuja said the appointment of the two agencies was the next step in the company’s journey. “Our objective is to be the largest and preferred fashion destination in the country. Brand communication is almost as important as the products on offer,” said Mr Ahuja, who was Nestle India’s country business manager til last year.
Online retail market leader Flipkart, on the other hand, has so far used a little known Bengaluru-based agency, Happy Creative Services, which came up with the retailer’s distinctive kids-masquerading-as-adults ads.
Lowe’s recent ads include the one for Tanishq which was scripted around the topic of remarriage and the series of Micromax ads featuring Hollywood actor Hugh Jackman.
While Myntra and the agency did not go into specifics of the marketing strategy, G V Krishnan, Lowe’s executive director, said the focus will be on creating a ‘fandom’ for Myntra. “We want to make the brand endearing, aspirational and yet inclusive to all its consumers.”
Myntra’s Mr Ahuja said the company is still finalising the private labels around which they will announce specific marketing campaigns. The firm, which raised $50 million (over Rs 300 crore) earlier this year, has a range of western casual wear labels for men and women and an ethnic wear label for women.
Poran Malani, president at Ogilvy India Worldwide, said Myntra was “forging the New Digital India.”
It makes business sense for Myntra to create specific campaigns around their successful labels, Aashish Bhinde, executive director at financial services firm Avendus Capital, said. “The idea is to bring in higher margins and they will keep introducing private labels for that.”
Source:The Economic Times
Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved
Licensed to republish
