If we read through ecommerce updates of the past three-four years, it seems that fashion etailer Myntra’s Profitability Target is like a New Year’s resolution – meant to be broken.
The fashion etailer is now aiming to touch profitability by FY 2017-18. Myntra’s other two targets are to touch $2 billion in revenue run rate and increase Net Promoter Score (NPS) to 60% from the current 50% by the end of FY 2017-18.
In an event held this week, Ananth Narayanan, CEO of Myntra said,
“This year has been the best year we have had so far. We grew approximately 80% year-on-year and achieved a billion dollar run rate. October was another milestone for Jabong as it turned unit economic positive. Our margins were better this year as we gave out much less discounts.”
Artificial intelligence will act as the fuel
The etailers plans to improve its NPS score and increase loyal customer base with the help of artificial intelligence. By harnessing this branch of computer science, the etailer wants to infuse ‘personalisation’ to offer a better customer experience and plan & execute ideas effectively.
“We are investing a lot in machine learning and AI. We precisely know how consumers behave, we precisely know what kind of products sell,” said Ajit Narayanan, Myntra’s CTO.
AI would help to do the following:
- Recommend the right products according to customers’ location and buying history
- Suggesting brands/products with calendar integration
- Service of virtual personal assistants
- Image analysis and text mining
- Make the catalogue building process faster, seamless and economical
- Trend prediction
Myntra’s stars look good?
The growth was further driven by Myntra’s omni-channel strategy, focus on private labels, diversification move and practical approach. But would it be enough to meet the 2018 profitability target? Or would it be pushed once again?