Fashion brands tie-up with e-commerce for growth

Global fashion brands are playing a vital role in the development of India’s e-commerce

sector, as online retail platforms seek to differentiate themselves on factors other than price. Jabong has just added two UK high street brands – River Island and Blue Saint – along with Spain's Mango to its catalogue of more than 1,000 brands.

Increasingly, people are looking for fast fashion and international brands. Myntra, Jabong’s main rival in this market with some 650 brands available, is following a similar path, having recently agreed exclusive distribution deals with brands such as Scotch & Soda, from Holland, and Desigual from Spain.

Established portals like Jabong and Myntra offer significant benefits to overseas brands. There is an online environment that has already been created and ready for these brands to take advantage of. The international player does not fear its brand will get diluted in any way by listing online with these portals. Further, it is easier for them to test the market without having to incur heavy costs – these instead fall on the online retailer which pays for its exclusivity in having to buy and stock large inventory.

But not all online fashion retailers are looking for such arrangements. Players like Snapdeal, Shopclues and Limeroad are trying to strike a balance between style and prices. The likes of Myntra and Jabong are targeting an upper-middle class, fashion-conscious consumer who goes all out for style. Flipkart, which recently acquired Myntra, has announced that it will invest another dollar 100 million (Rs 600 crores) in the fashion category. And there is widespread expectation that Amazon, a relative newcomer to Indian e-commerce, will expand its fashion offer.