Myntra, one of India’s leading online fashion portals, is in talks to take over the local retail chain of Forever 21 in India. The US fashion brand, Forever 21, is targeted at teens and young adults.
Myntra already sells Forever 21’s products online in India under an exclusive tie up. The deal to take over the 10 brick-and-mortar stores – currently managed by a joint venture of Forever 21 and DLF Brands – will mark Myntra’s entry into offline retailing.
Forever 21 wants to exit the joint venture and instead wants to run a franchise operation in India. The talks are for Myntra to take over and effectively manage the franchise in India, boosting revenue which has been a paltry Rs 250 crore a year as compared to Spanish rival Zara’s Rs 720 crore per annum.
Meanwhile, Myntra is exploring the possibilities of opening its branded offline stores as well.
Forever 21 entered India in 2011 through a franchise route with Dubai-based Sharaf Retail and the business failed to scale up for two years, prompting the Dubai company to close the lone store in New Delhi in early 2013.
After the companies called off their franchise agreement, Forever 21 formed the joint venture with DLF Brands and opened ten stores in the National Capital Region, Mumbai, Pune, Bengaluru, Thane and Hyderabad.