Reliance Industries has announced its partnership with Flipkart-owned lifestyle ecommerce player Myntra. With this partnership, Myntra will co-brand its denim collection from its private label Mast & Harbour with the flagship product of Reliance, RElan FeelFresh.
Gunjan Sharma, CMO, polyester business at Reliance Industries Limited(RIL) stated, “RElan FeelFresh is one of our flagship products. The association with Myntra, being one of the fastest growing fashion brands in the country, provides us a great platform to launch apparels made out of our innovative technologies. We hope to partner with them on our other performance products as well”
Reliance And Myntra: How Will Partnership Work
As per TOI, the Mast & Harbour fabric will be made by using the RElan technology, that offers anti-microbial and anti-odour properties. As per the partnership agreement, RIL’s RElan will get its visibility through hand tags on the products and other publicity tools at the point of sale.
RElan is a B2B2C initiative which creates co-branded polyester apparel range.
Reliance has identified some western areas like Bhiwandi, Tarapur, Ichalkaranj, Malegaon, Navapur, Surat, Ahmedabad, Vapi and Umbergaon as some of the important centres to establish the brand presence of RElan.
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The company is targeting around 50 mills in these areas which can be converted into their hub excellence centers. RIL is also approaching the top 200 garment makers/fashion outlets to showcase their RElan offerings through their platform.
Reliance is coming up with such partnerships and offerings in order to cater the market which is currently being served by online giants like Myntra and Jabong.
Recently, RIL partnered with VF Corporation of the US, which owns the world’s largest denim player Wrangler, to co-brand the Inficool denim range and to market in China, India, Japan and Thailand.
Private Label Brands By Myntra: A Profit Generating Model
Myntra ventured into private label bandwagon in 2015, and as per the company, these labels currently comprises of one-fourth of its total revenues. The company has around 13 private label brands that include Roadster, Dressberry, Anouk, HRX and Mast & Harbour.
It recently announced that its private labels business has turned profitable and it expects its portfolio of 13 fashion brands is generating revenues of $25 Mn a month is thereby expected to give an annual revenue of $300 Mn, which accounts for around 23% of its total revenue.
Myntra’s earliest private brands Roadster, is expected to have an annualised revenue of $100 Mn, the largest brand on Myntra in terms of sales. Other large private brands include Mast & Harbour and HRX, each clocking about $25 Mn in annualised revenue.
The main reason behind the company’s focus on private label brands is the margin that it gets. For a regular lifestyle product, the margin varies between 3% to 7%, whereas the margin in private label brands is as high as 23%.
With Myntra partnering with Reliance Industries in order to co-brand its Mast and Harbour offerings, it will be interesting to see the effect on sales after the fabric change is made!