Myntra reshuffles private label fashion brands to align with new FDI norms
today Feb 6, 2019
The online fashion portal Myntra has restructured its private label business in order to comply with the new foreign direct investment (FDI) norms that came into effect at the beginning of the month.
Myntra, Flipkart’s fashion subsidiary, obtains a large segment of its business from private label fashion brands and exclusive brand tie-ups. However, Myntra has had to reshuffle its business structure to comply with the new FDI norms put forward by the Department of Industrial Policy and Planning (DIPP) that came into effect on February 1.
The business told ET Bureau that it no longer has any stake in any sellers on its platform and so complies with current FDI regulations.
“We did not have any equity ownership issues to contend with in our seller base,” Flipkart wrote to ET Bureau in an email. “We are committed to full compliance with the new regulations.” Myntra has previously reported obtaining a quarter of its revenue from private labels and, as they are now being sold through other sellers, will see margins drop somewhat.
The business falls under FDI regulation as it is a subsidiary of Flipkart, which is owned by the US business Walmart. Myntra has brought new seller entities on board that can retail Myntra’s private labels. For example, the former Myntra own-brand Chemistry is now retailed on the site by Wiztech and Mango is now retailed by WandWagon. Other private label brands are also being retailed by other sellers such as Mayazen and Unistand and AKS and Anouk now sell through FashionTech.
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