Myntra clocks $1 billion run rate in annualized GMV
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.
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