Myntra which had announced the launch of its marketplace model in April, will now expand its platform to more than 1,000 local retailers.
Myntra had partnered with over 100 local retailers and boutique brands in Delhi-NCR, Mumbai, Bangalore and Surat. Currently, 20% of its revenues are driven by the marketplace model.
Offline local retailers will also be given access to Myntra’s logistics network for delivery as well as other services like CoD and managing returns.
Myntra’s foray into the marketplace model, took place shortly after the Premji investment into the company.
Myntra is now focusing on tapping into local retailers to push up margins, aside from that of private labels.
With this, Myntra gives customers access to products from boutiques and shops that are typical in local city shopping. They have listed with them shops from Linking Road in Mumbai, Commercial Street in Bangalore and Chandni Chowk in Delhi among others.
With only 0.5% of India’s $500 billion retail industry online and most shopping still offline, the move will help Myntra to bring on board local retailers. Myntra can also tap into the customers from some of the largest and most expensive offline shopping areas in the country.
Rentals too have been increasing in these areas. As of December 2013, Linking Road and Connaught Place in Delhi had recorded rents of $1,548/sqm a year and $1,444/sqm a year (via). It would make sense for local retailers to leverage Myntra’s platform to increase sales at little extra cost and increase brand awareness.