The Flipkart Group revealed on Thursday that it had invested $35 million in Arvind Fashions in one of the decades-old Indian subsidiaries for a major minority stake as Walmart corporation wants to expand its dominance of fashionable apparel in India.
Over the years, Flipkart has built itself on the fashion e-commerce market of India through its acquisition of Myntra and Jabong. Today, the acquisition of Arvind Fashions’ Arvind Youth Brands, which operates the brand of Flying Machines in India, was revealed by the Group. Both companies said the new investment strengthens their relationship to meet the demands and needs of India’s young people.
The investment comes at a time when the private ecosystem of both Flipkart and Amazon is being extended in India. Flipkart may also try to duplicate a similar fashion strategy by courting Arvind Fashions. Forrester, a research company, placed the Indian eCommerce market for fashion products at $7 billion worth.
Ninety-one-year-old Arvind Fashions, Arvind Fashions started selling Flipkart products six years ago and runs one of the largest fashion brands in the world, manufacturing and carrying apparel from foreign labels, such as Polo Assn, Arrow, GAP, Tommy Hilfiger, Calvin Klein, Aeropostale, Children’s Place, and Ed Hardy.
