Macy's India entry will be a win-win: Globaldata
The entry of U.S. department store Macy's Inc. into India, via a partnership with local distributor Myntra, is being touted as a win-win for both parties, according to data and consultancy company, GlobalData.
The Macy's India deal, which was first revealed in September, will see Macy's private brand portfolio sold online in India via Myntra's multi-brand platform. The partnership will give Macy's exposure to the fashion-savvy Indian market, whose penchant for western wear is evolving, while consolidating Myntra’s offering of popular international brands for Indian consumers, according to GlobalData.
“Myntra will offer over 600 options from Macy’s private label brands, including Alfani, Jenni, Club Room Mens, and Epic Threads," said Raviteja Neralla, retail analyst at GlobalData.
"Macy’s will be able to attract a wide range of consumer segments, with its brands covering a wide range of fashion trends and product categories. Macy’s’ offerings will be an addition to Myntra's wide assortment of Indian and foreign-based brands.”
Some 40% of Indian consumers typically purchase clothing and footwear from foreign or global multinational brands, according to GlobalData’s 2022 Q3 consumer survey. This proportion is even higher among 25 –34 and 35–44-year-olds, at 49% and 45%, respectively, the report added.
“Indian consumers, especially younger generations, have a significant inclination towards Western styles and fashion," added Neralla. "Macy’s decision to enter the Indian market through Myntra is aligned with Indian consumers’ growing inclination to purchase clothing and footwear online. About one in five of Indian consumers are buying clothing and footwear products online in 2022 compared to 10% in 2019, which means that the online penetration in clothing and footwear has doubled due to the Covid-19-induced transition. Macy’s has identified the rising online penetration of clothing & footwear in India, a rapidly growing market. This will give a boost to Macy’s overall online presence.”
In recent years, Myntra has gained popularity among Indian millennials and Gen-Z, thanks to its digital-lead strategy, offering of new brands, customer personalisation.
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