In a bid to accelerate growth of its cashcow Fashion ecommerce vertical, Flipkart has announced buying a minority stake in Indian fashion brand Arvind Youth Brands, the company that operates the very popular Flying Machine brand in India. The brand is owned by fashion juggernaut Arvind Fashions.
The deal, that saw Walmart owned Flipkart invest $35 million in one of India’s biggest fashion brands, hopes to further strengthen Flipkarts’ lead in the only market where it has Amazon beat-Fashion.
The fight between Amazon and Flipkart has been a long fought battle, and one that continues to wage. However, Amazon has had a lead — as slender as it may be — over Flipkart in most ecommerce verticals. That being said, through its acquisition of brands like Myntra and Jabong, Flipkart has managed to maintain a clear lead in the fashion industry. The sale of fashion products has been Flipkart’s only saving grace over the years, in a market that just can’t get enough of the “Prime” experience that Amazon offers.
Arvind’s Fashion is a veteran in the industry, boasting 91 years of experience under its fold. Moreover, its ties with international brands like Polo Assn, Arrow, GAP, Tommy Hilfiger, Calvin Klein, Aeropostale, the Children’s Place and Ed Hardy, for which it provides manufacturing services, makes it the perfect candidate for Flipkart’s house of fashion. Amazon’s efforts to increase its influence in the sector is a reckoning call for the company, and the more acquisitions it makes, the better chance it has of surviving the fight against the largest e commerce company in the world.
With the partnership, Flipkart plans to “continue to grow the market for its portfolio of products and enhance the strong brand equity that has been built over the last few decades,” said Kalyan Krishnamurthy, chief executive officer of Flipkart Group.
Arvind fashion also realises the opportunity that a partnership with Flipkart can provide, and hopes that its growth in online retail will accelerate in the coming months.
“Given the strong existing relationship with the Flipkart Group, and their presence in online fashion, it was an obvious choice for us to enter into this engagement through which Flipkart and Myntra will be our preferred online partner for the Flying Machine brand, while we continue to grow our offline sales through channels like exclusive brand stores, department stores and multi-brand stores,” said J. Suresh, managing director and chief executive of Arvind Fashions