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Myntra Clocks $1 Billion Run Rate in Annualized GMV, net of Discounts in July’16

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Myntra, India’s leading platform for
fashion brands and pioneer in m-commerce play, has crossed $1 billion run rate
in annualized GMV post discounts in July 2016. This is the first time ever that
an Indian fashion brand has recorded $1 billion run rate in annualized average
GMV.

Sales volumes for the month were
propelled by growth of Myntra Fashion Brands, increased contribution of
international brands, high growth in sportswear and womenswear category and a
hugely successful End of Reason sale. This betters the January 2016 performance
when Myntra had clocked $800 million in annualized GMV. Myntra has continued to
strengthen key strategies which helped the company clock a growth of 70% YoY in
the first four months of the fiscal year. These include a focus on a brand mix
that appealed to the price conscious as well as the fashion and brand
conscious.


According to Ananth Narayanan, CEO,
Myntra, “We have now surpassed our January benchmark to make July 2016 the
biggest month ever for Myntra. The annualized GMV run rate of $1 billion puts
us on the path to touching the $1 billion GMV mark in a fiscal year. In the
past month, we have taken some market transforming steps. Our focus is to
continue to transform fashion and lifestyle in India through technology.”

Jabong Acquisition
Myntra’s acquisition of Jabong from
Global Fashion Group has led to the creation of India’s biggest fashion
shopping destination. The acquisition of Jabong further strengthens Flipkart
Group’s position as the undisputed leader in the Fashion and Lifestyle segment
in India.

Myntra and Jabong are all set to
define the next generation of online shopping with a combined base of 15
million monthly active users and offering the best of brands to Indian
consumers. The acquisition makes it the strongest online fashion and lifestyle
destination in India and strengthens Myntra’s position in this segment, thereby
accelerating the path to profitability for both entities. There are synergies
in four immediate areas –

– In logistics, where with E-kart and
Myntra they would be able to provide the Jabong customers with differentiated
fashion specific services
– In leveraging Myntra’s capability in
deploying technology at scale
– Complementary and mutually
beneficial brand exclusives across both platforms
– The deep brand relationships which
both Myntra and Jabong independently have

Jointly Shaping the Indian Fashion
Eco-system With Brand Partners
Myntra expects the branded fashion
market to grow twice as fast as the overall fashion market in the next five
years. There is continued expansion in the portfolio of domestic and
international brands, including brands such as Sachin Tendulkar’s True Blue,
Khadi Originals from IndusDiva, TOMS and Meters/bonwe.
Myntra and Jabong will use technology
integration and deep consumer insights to develop partnerships with brands to
increase branded sales in India at full price.

Second, the company embarked on
strategy of creating and growing brands. Myntra has acquired a majority stake
in HRX which is gearing up to go offline in the next financial year. Myntra
also extended its relationship with FCUK for six years.

Third, in order to bring the offline
experience closer to its consumers, we will open the physical experience store
in the next three months with Roadster, HRX and All About You. This
omni-channel strategy will provide a tech-enabled enhanced shopping experience.
The omni-channel strategy is expected to improve confidence in online shopping
and accelerate the number of customers converting from offline to online
shopping.

In addition, Myntra is targeting
strong growth in new segments such as home furnishing, re-launching its
personal care business and expanding its sales of fine jewellery. Home
furnishing is about 1 per cent of the revenue and is growing at 50-60 per cent
on a monthly basis.

TECHXLR8 Asia