According to media reports, Flipkart-owned online fashion store Myntra is in advanced talks to manage the local retail chain of Forever 21, the US fashion brand targeted at teens and young adults. The Indian company already sells Forever 21's products online in India under an exclusive tie-up. A 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, a global trend among ecommerce firms. With such moves, ecommerce firms try to de-risk their business from online-only focus.
Forever 21, which entered India half a decade ago and has changed a partner already before tying up with DLF Brands, hasn't been able to scale up its business like global rivals such as Spanish brand Zara. While Zara's annual revenue was about Rs 720 crore in the fiscal year ended March 2015, at Forever 21, it was around Rs 250 crore. According to the reports, the talks are for Myntra to take over the chain, buying out both Forever 21 and DLF Brands. Myntra has been toying with the idea of having its own brick-and-mortar stores. However, analysts are skeptical about the success of offline operations of a company that has its expertise in online sales, the skillsets needed are different.