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Wednesday 4 December 2019

Alterations, Myntra's new customer acquisition strategy to boost online shopping for apparels

Getting the right size apparels across various online shopping websites has been a big challenge. It is also one of the key reasons why online apparel shopping hasn't picked up in India the way it should have.

Attempting to address this issue is Flipkart Group's online fashion and lifestyle destination Myntra with its value-added service called ‘Alterations’. The best part though is that customers will get to avail this service at no extra cost.


In a pioneering move, Myntra has partnered with tailors whereby online shoppers who have purchased apparels on Myntra will have the option of availing alteration services at their doorstep. The eCommerce firm is of the view that this feature will make online shopping more convenient for its customers while also enhancing its customer base. The strategy will encourage offline only customers to shop online and allow partner tailors to earn additional income by growing their business.

According to Amar Nagaram, head – Myntra Jabong, launching alteration services on Myntra replicates a key offline phenomenon that further bridges the gap between online and offline shopping experiences for customers. "It is aimed at making online shopping more convenient while reducing returns due to size and fit issues. We are committed to strengthening the small and medium businesses within our ecosystem.

"This service provides us an opportunity to work with tailors across the country and provide them an opportunity to augment their income while also enhancing their business and customer interaction skills through training. We have introduced this service in four cities ahead of our 'End of Reason Sale' and will extend this to 80% of our customer base over the next one year," he said in a statement.

To start with, the alteration service will be available in cities like Delhi, Mumbai, Bengaluru and Kolkata, offering length alterations for jeans and trousers for men. In the next phase, the service will extend to size alterations for women including products such as kurtas and kurtis. The etailer has so far tied up with 200 tailors, located in zones that have a large number of Myntra customers in the four cities. Online shoppers will be able to opt for alteration service once the product is delivered to them.

"The tailors will pick up the product from the customer’s residence after taking necessary measurements and deliver them to the customer, within 24 hours to 48 hours. The alteration service is being offered at no extra cost to customers." Myntra said in a statement.

Tailors with a tailoring shop at a convenient location and necessary equipment will be eligible to associate with Myntra to offer this value-added service. However, tailors need to also have the required expertise to execute the alterations as per predefined standards. On its part, Myntra’s on-ground team will train tailors on using the platform to cater to requests from the neighbourhood and the necessary customer engagement skills.

(The writer is a Mumbai-based independent business journalist and has extensively covered diversified consumer businesses over the last two decades. He can be reached at hello@ashishktiwari.com)

Thomas Cook India acquires rights to Thomas Cook brand for India, Sri Lanka and Mauritius markets

Thomas Cook (India) has acquired the rights to use the Thomas Cook brand in India, Sri Lanka and Mauritius markets. The deal involves a one-time payment of approximately Rs 13.9 crore (GBP1.5 million).

Madhavan Menon, CMD, TCIL
An agreement to this effect has been signed with AlixPartners, Thomas Cook UK’s (TCUK) appointed special managers. The agreement ensures that Thomas Cook (India) can now use the brand in perpetuity on a royalty-free basis. This move by TCIL also prevents possible new entrants into these markets, using the Thomas Cook brand name.

Madhavan Menon, chairman and managing director, Thomas Cook (India) Ltd (TCIL), said, "We have been able to sign an agreement to acquire the rights to the iconic Thomas Cook brand. It is one of the most respected names in the travel services space and one that we at Thomas Cook India have operated uninterrupted for 138 years now."

An integrated travel and travel-related financial services company, it has been operating under the Thomas Cook banner in India since 1881. In 2012 when TCIL were acquired by Fairfax Financial Holdings of Canada, it had entered into a Brand Licence Agreement with the erstwhile Thomas Cook Group of the UK to pay an annual brand licence fee of Rs 2 crore until 2024 for exclusive use of the brand in India, Sri Lanka and Mauritius markets until 2024. The brand license agreement also gave TCIL the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.

"So when this opportunity of complete ownership of the brand name came up, we had to grab it," said Menon.

Among the largest travel service provider networks headquartered in the Asia-Pacific region, Thomas Cook India Group's operations is spread across 29 countries and five continents. With a combined revenue in excess of Rs 6,718.7 crore for the financial year ended March 31, 2019, it currently employs over 9,700 people across its offices.

In addition to Thomas Cook, the Thomas Cook India Group operates leading B2C and B2B travel brands including SOTC, TCI, SITA, Asian Trails, Allied T Pro (ATP), Australian Tours Management (ATM), Desert Adventures, Luxe Asia, Kuoni Hong Kong, TC Travel, Private Safaris East & South Africa, Sterling Holidays and Digiphoto Entertainment Imaging (DEI), with strategic investments in Ithaka by Travel Junkie Solutions.

Thomas Cook India Group, according to a company statement, continues to remain financially strong with cash and bank deposits balances of Rs 1,088.3 crore as of September 30, 2019. On a standalone basis Thomas Cook India is debt free and the group generates an average annual free cash flow of around Rs 200 crore.

"Our teams will continue to build the Thomas Cook business across India, Sri Lanka and Mauritius, and grow sustainable value for all our stakeholders in the years ahead,” TCIL said in a statement.


(The writer is a Mumbai-based independent business journalist and has extensively covered diversified consumer businesses over the last two decades. He can be reached at hello@ashishktiwari.com)