After investing INR 260 Cr for a minority stake in Arvind Fashions’ (AFL) subsidiary Arvind Youth Brands, which owns the Flying Machine brand, Walmart-owned Flipkart is now in talks with Kontoor Brands for rights of iconic brands Wrangler and Lee in India.
While grocery retail is the holy grail for Flipkart it is riding on the back of fashion to make it big in India. Flipkart-Walmart is already ahead of the rest in ecommerce fashion and the idea is to get bigger. With its deal with Arvind Fashions’, Flipkart has got randed apparel brands under its roof such as Calvin Klein, Tommy Hilfiger, US Polo Assn, Ed Hardy, Hanes, Arrow, Gant, Flying Machine and Nautica.
Looking to gain a leg up in the online fashion battle, Amazon and Flipkart are engaged in a tussle to shore up their offerings.
Flipkart has followed an acquisition strategy for other brands and verticals in the past as well in order to expand its operations and leverage strategic partnerships to keep its cost structures lean and scale rapidly.
Earlier this month, Flipkart had also announced a House of Brands initiative to bring together Flipkart Fashion Originals, Myntra Fashion Brands and Myntra Brand Accelerators under one umbrella.
If Flipkart’s talks with Kontoor Brands fall in place, the ecommerce which operates digital fashion retailer Myntra, will get manufacturing and distribution rights of the two brands, reported TOI.
Walmart’s Big Billions From India
American retail giant Walmart Inc. had said revealed during its August-October quarter earnings that its Indian ecommerce unit Flipkart and payment app PhonePe have seen a strong quarter on the back of ‘Big Billion Day’ sales, with monthly active users (MAU) on an all-time high for the Indian etailer.
“In India, Flipkart and PhonePe have seen a strong quarter, with monthly active users (MAUs) being on an all-time high for the platforms,” said Doug McMillon, president and CEO, Walmart Inc on an earnings call.
Walmart said that while its net sales continue to be impacted by the continuation of the pandemic, total revenue stood at $134.7 Bn, an increase of $6.7 Bn, or 5.2% from the corresponding period last year.