Global brands looking at different online strategies to tackle competition

Most brands are still indecisive on whether they launch themselves on an e-commerce portal or launch their own site

Global fashion brands are mulling different strategies to go online even as they tackle growing competition from e-commerce marketplaces.

For instance, DLF Brands, which retails Mango, Forever21, Mothercare among others, is looking to start e-commerce site, which will focus on categories such as ladieswear, kidswear and so on.

"It will be categorywise play and much bigger than brandwise retailing. We will dominate that space," said Dipak Agarwal, chief executive, DLF Brands.

Agarwal said at some point in time, DLF Brands' e-commerce venture will compete with marketplaces such as Snapdeal and Flipkart or give similar experience to customers.

"A lot of retailers are in a dilemma on whether they should go online by themselves or tie up with online players. In next one year, they would find out where they would go," he said.

He said apparel brand Mango is evaluating whether to tie up with one or two online brands or go online itself in the country.

French clothing brand Lacoste is also evaluating whether to extend its global online portal to the country or go on an e-commerce portal, which will allow it to sell on full price and maintain premium look and feel of the brand.

"E-commerce is wonderful channel. It allows us to connect with customers who cannot buy online either permanently due to their distance or temporarily due to lack of time," said Rajesh Jain, MD and chief executive, Lacoste India.

Jain admits that heavy discounting by e-commerce sites has impacted the retail business. "We are five per cent away from our target. That is also because of sluggishness in the economy and brands went on discounting throughout the year," he says.

"Discounting is the only reason we stayed away from e-commerce," he says adding that on the online front, they will not focus on discounting.

Prashant Agarwal, joint managing director of Wazir Advisors, believes brands should try marketplaces first before going online on their own.

"Anybody who wants to go online should first go to go to marketplaces and then launch own website. Buyers will first go to marketplaces, compared and then buy a brand," he said.