jabong acquisition

According to sellers who use both platforms, Myntra intends to convert Jabong into a platform for housing its own private labels. This is a different route from Jabong’s initial intention of establishing itself as a marketplace that hosts exclusive international brands.

Myntra, based out of Bangalore, has poured in-house brands such as HRX by Hrithik Roshan and Roadster, on Jabong. This has led to people questioning the long term viability of Jabong. A senior official selling on both platforms commented saying,

Jabong’s team is not happy as the private brands don’t sell much but they (Myntra) are forcing Jabong to list private brands

Another seller commented,

The private labels of Myntra have very large portfolios. For instance, if a regular brand has 3,0004,000 products, Myntra-owned brands have between 6,000 and 7,000 products

In response to these comments, a Myntra spokesperson said,

The entire portfolio of our private brands is now available on Jabong, and not just unsold inventory. The stocking strategy reflected the attempt to harness synergies. Jabong private labels will also be available on Myntra in a few months. This is part of our strategy to grow and cross promote our private labels on both platforms

Jabong was Myntra’s biggest rival in the online fashion marketplace before it was acquired for $70 million in July 2016. Before being acquired Jabong had stopped all of its private labels in a bid to become a premium lifestyle platform. Myntra’s current strategy runs opposite to what was put into action before the acquisition.

Jabong was known earlier for introducing a slew of international fashion labels in the country including Topshop, Next, Topman, and Dorothy Perkins. The company had carved out a clientele who were drawn by the exclusive selection local and global brands.

Sellers feel that Myntra is now robbing Jabong of its exclusivity by listing the latter’s private brands on Myntra. Additionally, very few of the company’s initial plans to exclusively tie up with international brands are being fulfilled after being associated with Myntra. But Myntra spokesperson contradicts this stating that Jabong still has a strong international brand portfolio having launched several international brands including Forever 21, Forever New, Anthony Morato, Aeropostale, and Esprit.

But again, none of these brands are exclusively sold on the platform and so customers have lesser reason to visit it. Such moves and the discord within the company could eventually lead to its unfortunate closure. However Myntra has denied the possibility of such an event happening as it has stated that the 30% overlap between Myntra and Jabong has only resulted in access to a wider customer base for the two platforms.

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