Indian Terrain, Myntra explore avenues to boost online sales

Venky Rajagopal, Chairman & MD, tells us, “Our retail business is going strong. We are the fastest growing apparel brand in India today. E-commerce comprises 5 per cent of our business. We can double it or triple it. But e-commerce is a discount model business in the country and everybody gives discounts. We tend to hold back to ensure that whatever we sell on e-commerce channels are sold on full price. We also use e-commerce sites as clearance channels.” 

He adds, “On an e-com site like Myntra, you will only find Indian Terrain merchandise from the previous season on discount. The merchandise from the current s e a s o n goes on sale only on full price. We have tied up with the portal now and are exclusively working with them – offering 20 per cent of our merchandise on full price. We are partnering with the site to understand the digital marketing requirements, and find out which products sell the best.” 

Elaborating on this aspect, Rajagopal says, “Escaping the discounting cycle is impossible. Even our mainline partners like Lifestyle or Shoppers Stop only have 105 days of full price sale. The rest of the year is basically marked by end of season sales. And while our competitors offer discounts in the range of 28 to 30 per cent, Indian Terrain doesn’t go beyond 18 to 19 per cent on discounts, which I think is how the brand has positioned itself over the years.”

A long-time advocate of fitness and cycling, it was only natural progression for Rajagopal to be at the forefront of the Champions Sportive Series, a competitive cycling event for amateur cyclists, launched on Thursday. He also has a curator’s eye when it comes to picking his weapon of choice. He tells us, “I ride a Colnago bicycle which is known as the Ferrari among cycles. The bicycle frames are handcrafted in Italy and you must get yourself measured for buying the bike. There is an 8-month waiting period to get a bicycle. So, I went to their factory in Milan, got myself measured and then went back for a trial.”

The current quarter has been good for TI Cycles, with respect to revenue, says an official of the company which has partnered with Indian Terrain to launch the cycling event. And although the cycling industry has been stagnant for the past few years, what has been working well for the company is the performance cycles segment. Kailash S, Head Marketing, TI Cycles, a division of Tube Investments of India, says, “Last year, brand Montra sold 20,000 bicycles. The year before, we sold a little over 10,000 bikes. This year, we target 45,000 bicycles in Montra. The overall market for performance bicycles is about 1 lakh units a year. We have market share of 40 to 45 per cent and the market is expected to growth at 30 to 35 per cent annually.”