In a move to create a sustainable mark in the apparel sector, Flipkart announced that it would invest $35 million in the well known manufacturer Arvind fashion. It has acquired a significant minority stake in the firm and is looking to serve the hungry fashion conscious youth that is growing rapidly. The move is reportedly to serve the needs of the mentioned group in a more efficient manner.
India is considered to be the world’s second largest internet market with a range of players in the online category. Over the years Flipkart has managed to stay ahead of the game through various acquisitions in terms of Myntra and Jabong and now through its investment in Arvind Fashion’s ‘Arvind Youth Brands’.
In India, Arvind fashion overseas the operations of the prominent brand Flying Machine and started selling its items on Flipkart around 6 years ago. Besides local, the firm also manufactures and distributes international brands such as Polo Assn, Arrow, GAP, Tommy Hilfiger, Calvin Klein, Aeropostale, the Children’s Place and Ed Hardy. On inquiring about the deal, the CEO of Flipkart, Kalyan Krishnamurthy said that through this collaboration they are looking into growing their portfolio of products along with enhancing the brand equity. He also said that the brand Flying Machine resonates with the values and style of the youth which is a huge market to tap into. While J Suresh, MD and CEO of Arvind fashion reportedly said that the collaboration would help the firm improve its online growth strategy. He also said that while they continue to grow their offline channels using exclusive brand stores, department stores and multi-brand stores, Flipkart and Myntra will act as their preferred online partner for the Flying Machine brand and that the amount of reach Flipkart has will help to enhance their engagement with consumers.