After a false alarm, the confirmed date of Myntra App-Only move is finally out. According to earlier reports, the fashion portal was going to become app-only store from 1st May. But it didn’t happen. Now, straight from the horse’s mouth, Myntra will shut down its desktop site and will be only available on App from 15th May 2015.
On May 9th, the online fashion retailer informed its customers and the world about this decision through an emailer and print ads in newspapers.
Myntra’s corporate foresight
Myntra is the first Indian ecommerce player to shift to an app-based platform entirely. They had along with Flipkart, shut down the mobile site few months back and urged customers to download their app. Now with desktop site too closing curtains, Myntra shoppers have no option but to buy from their app.
According to ETRetail news report, Ganesh Subramanian, Head – New Initiatives at Myntra revealed that the company will lower discounts, augment mobile shopping app and push its homegrown labels, in order to become profitable within a year or two. He said, “If there is one organisation that could do this (turn profitable), it is us. (Own labels are) getting close to a fourth of our business. It is going to a third of our business and eventually to half of our business.” Besides reducing costs, this move will also reduce dependence on platforms like Google.
This shift is influenced by the fact that Myntra gets 80% of its traffic and 70% of sales from their app. This can be completely credited to the emergence of smartphones which has benefitted mobile-shopping in a big way. According to some research studies, the number of mobile Internet users in India is projected to reach 213 million by June and will touch 480 million by 2017! So it looks like mobile shoppers will drive future online sales. “In our view the next wave is mobile. There are many millions of teenagers coming into the system lapping up mobiles. We are able to see a tipping point”, Subramanian said to ETRetail.
Agreed, smartphone users are increasing, so are mobile shoppers. But it is a huge risk. Fluctuating mobile internet can cause issues during payment. Not to forget some products are better viewed on large screens. Also, it is unfair to non-Smartphone users as well as to those who still prefer desktop site. Will this gamble pay-off? Time will tell.