Fashion
retail website Myntra is expected to shut down its website in favour of
moving all operations to its mobile app, according to a report in The
Times of India. Myntra was acquired by Flipkart last year for a sum of
Rs 2,000 crores.
The
report states that Myntra pulls in about 80% of its traffic and 60% of
sales through its mobile application. It has plans to take the sales
number to 90% by the end of the year. When that happens, the fashion
e-tailer will most likely shut down its websites according to sources
familiar with the matter. If it does indeed happen, it will be the first
instance of an online e-tailer going mobile-only from web + mobile
format.
According
to Mukesh Bansal, co-founder of Myntra and CMO of Flipkart, the growth
on the mobile platform has been rapid because fashion shopping is quite
impulsive. Myntra is focussed on the mobile platform and will be making
major investments on this platform going forward.
Myntra
is on course to complete Rs 2,000 crore in sales or gross merchandise
value (GMV) for the current financial year. GMV refers to the overall
revenue generated by online retailers through sale of goods on the
online platforms. Out of the total GMV, the e-tailer makes around 5% to
20% depending on the category.
In
the fashion category Flipkart/Myntra’s biggest rivals remain Amazon and
Snapdeal. Amazon recently started the fashion category in India,
whereas Snapdeal too is on course for a $1 billion in sales under the
fashion category.
After
electronics, fashion is the category which makes the most moolah. It
accounts for nearly 30% of the GMV according to a report from Morgan
Stanley.
Posted by : Gizmeon
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