FlipKart, the acquirer of everything e Commerce (and many other seemingly unrelated tech companies) controls nearly 50% of the fashion e commerce market. How does this play out? With distribution like that private labels become a viable business. Myntra of course is already doing that with Roadster & HRX (built in partnership with actor — Hrithik Roshan).
Both Myntra & Jabong are well below their peaks. While the acquisitions made strategic sense, one wonders if the loss in market share is a result of changing organizational dynamics (all founders of Myntra & Jabong have moved on to other projects) or simply a by product of changing market conditions.
Unlike other sectors, fashion e commerce is not a winner take all space. Voonik’s growth should tell you that. With a simple and focused strategy of affordable fashion Voonik has taken over a stunning 18% of the e Commerce market. affordable fashion strategy is similar. Both LimeRoad and Voonik recently added men’s fashion in May & June 2016. The market share gains are plain to see.
Yepme was the pioneer in the online private label space. The raised over $80 Million in funding and even had Shahrukh Khan as a brand ambassador. But even the King Khan couldn’t get customers to download a single brand app. To be fair, YepMe has now started selling its products on other portals.
All of us in the Tech & VC space had written off ABOF. ‘They don’t have the DNA to succeed in e Commerce’ we said to each other. By the looks of it, they are learning fast.
Funding and movie stars do not guarantee market share or success. Customers find & appreciate value not optics.
Thanks for your time,
Ashish
- Team KG
Subscribe to our newsletter here
You can reach me on ashish@kalagato.com
