Myntra, the Flipkart-owned online fashion e-tailer is said to be in advanced talks with the U.S-based premium apparel brand Ralph Lauren for an exclusive online retailing deal for the Indian market. A person aware of the development said to Economic Times that the deal could be finalized as soon as within a week.
As per the report, Ralph Lauren, a New York-based fashion house, is currently looking to sign two different dealers for its products in India — one for the online platform and other for the brick-and-mortar stores.
While the company is in talks with Myntra for the online exclusive deal, it is said to be in talks with Aditya Birla Group’s Fashion and Retail division as well. The latter plans to set up Ralph Lauren-branded offline stores in the country through a franchise agreement. The first store of the fashion house is likely to open at the Emporio in Chanakyapuri, located in New Delhi’s diplomatic enclave.
Entering India seems to be a part of company’s turnaround plan, based on which it is closing several outlets in the U.S to reduce the manpower. Notably, Ralph Lauren is currently going through a rough patch in its home market.
If Myntra gets the exclusive online rights to Ralph Lauren, it will mark the second major fashion brand deal for the company in this year. Earlier this year, the company forayed into offline space with the announcement if acquiring the India brick-and-mortar chain of Spain’s Mango that was run by two India franchisees.
Myntra also launched its own first offline store for its private label “Roadster”. The store, which is “highly tech-enabled”, features several new elements to engage customers such as video wall, controlled by shoppers through a futuristic, multi-action touch-interface. It showcases details of products and provides an update on key international trends.
Myntra is currently the country’s largest online fashion retailer. It was acquired by Flipkart for $300 million in 2014 and sells a host of global brands such as Nike, Puma, Levis, Wrangler, Arrow, Diesel, CAT, Harley-Davidson, Ferrari, Timberland, and US Polo on its platform. Along with Jabong, which it acquired for about $70 million, the company controls over 50 percent of Indian online fashion space.
The online fashion segment in India is currently estimated at $2 billion and may balloon to $20 billion by 2020 to become the single largest online category surpassing consumer electronics.