After a lot of speculation and false dates, Myntra finally made the transition to app-only on May 15th. A 10% dip in sales were reported in just a week, followed by the debacle of the Mega Weekend Sale. Of course, it led to more debates about the fashion etailer’s choice to embrace the app-only strategy and if it’d consider going back to its multi-platform version.
However, we hear that Myntra has no such plans and will continue to be app-only. A company spokesperson said that it’s only been a month since the transition and they are not ready to reveal figures yet. He also added that they would share them the moment they were ready to.
The spokesperson added, “For your understanding, we will not be moving back to the desktop as our focus is 100% on the app. You will also see regular app updates with a lot of social features being introduced.”
What could have caused the decline in sales?
If the ecommerce major is so confident of its move, it’s only natural that they would have anticipated and calculated the possible dip in sales before making the transition.
Devangshu Dutta, chief executive at Third Eyesight, a retail consultancy firm, feels a customer might more on desktop compared to an app due to the ease of shopping on desktop. “This could have caused Myntra’s sales to decline so drastically,” Dutta observed.
Why did Myntra go app-only?
However, Myntra wanted to create an inclusive market in fashion shopping considering the increase in smartphone penetration from 120-140 million in 2014 to 600-700 million by 2020. “According to a recent study, 90% of smartphone users in India use apps, which is close to 158 million as of today. The country ranks second only to the US in the usage of shopping apps,” the company had said in a press release.
At the time that Myntra went app-only, they claimed to have seen around 95% internet traffic from mobiles which converted to around 70% sales from them. The estimated 9 million app downloads at that time was expected to increase by 5 million at least in 4-5 months.
To be fair, yes it has been just a month since the transition like Myntra said. With the new features and services to be introduced in time, maybe we will get to see Myntra’s logic for the same. And at some point, everyone might even agree that it was a good move. Maybe!