Aditya Birla Group to foray into online fashion retail segment

In a move which would increase competition in the online fashion market, the Aditya Birla Group is going to launch an online fashion e-tail venture, selling apparel, footwear and accessories, The Economic Times (ET) reported. Currently, this space is dominated by Jabong and Myntra.

"Fashion e-tailing will be the group's launch pad into the e-commerce space, which offers multiple opportunities," ET quoted a person familiar with the plan.

The group is in the process of forming an e-commerce team, which would be headed by former Mckinsey executive Prashant Gupta. Gupta, who joined the group in 2010, was given the task of figuring out opportunities in the e-commerce segment.

The fundamental structure of the website and its branding is expected to be finalised in six weeks. "We are evaluating several options for branding," the above mentioned source added.

The $40-billion group already runs fashion business through Madura Fashion & Lifestyle, which sells brands like Louis Philippe, Van Heusen, Allen Solly, Peter England and People. The online venture will operate separately from this brick-and-mortar business.

The group's foray into e-tailing is in accordance with chairman Kumar Mangalam Birla's plan of investing in such business opportunities which has the potential to give significant returns in the future.

“By 2020, India's online retail market is projected to grow to $45 billion, from $2 billion in 2013. Within this sector, fashion and apparel will grow faster,” ET quoted a research report on e-commerce by Motilal Oswal.