Indian ecommerce leader Flipkart is trying to navigate through rough weather. But its fashion arm Myntra is performing well, just like few other online fashion players.
Niche players scoring big
Specialty e-stores in the apparel, fashion accessories and cosmetic categories have managed to attract customers in a big way. Be it Myntra, Nykaa or Voonik, the market share of each of these players is only increasing YoY. Whereas, biggies are gradually losing their market share or are stuck at the same place.
According to reports, Myntra would exceed its FY 2016-17 GMV target of Rs. 5000 crore.
Things that are working for such niche firms are:
- Private labels
- Wide selection of products/brands, including rare national & international brands
- Technological innovation
- Hybrid ecommerce strategy
Sreedhar Prasad from KPMG India rightly elucidated,
“If you look at the stats around the current active shoppers and users, there might be heartburn for the larger market places in the short-term at least because Myntra is emerging as a brand with a clear identity and is winning customers who are fashion seekers. To me they are emerging as a fashion destination or an aggregator of fashion brands (rather) than a marketplace.”
Myntra to launch fully automated private label
Like stated above, one of the key differentiators between online marketplaces and specialty stores has been the clever use of technology. Flipkart-owned Myntra’s latest move proves that, yet again.
The fashion etailer is all geared up to debut its fully automated fashion line ‘Moda Rapido’, designed minus any human involvement.
Ambarish Kenghe, SVP, Head of Product, Myntra revealed,
“We are launching a fully automated Moda Rapido fashion collection starting with tee-shirts where designers have no role to play, in the next 15 days on Myntra. Next will follow, a line of jeans, kurtas and shoes. Earlier, the AI technology would figure out certain attributes like a placket with a contrast that is selling well, a Chinese collar that is very popular or a particular type of cuff design that works well; our team of designers would then take those attributes and design a shirt but now, we have graduated to zero human intervention.”
Is Myntra’s automated fashion label a glimpse into the future of online fashion industry? And would online marketplaces like Amazon, Flipkart ever catch-up?