Leading m-commerce company Myntra has recorded a Gross Merchandise Value (GMV) worth $800 million in January 2016. This is a notch below its target of achieving $ 1 billion GMV by FY ’16. Intense competition from smaller players has delayed the Flipkart subsidiary from making the $ 1 billion mark.
The company also has raked up a loss of Rs. 740 crores, as against Rs. 173 crores in the previous year.
Steps that have led Myntra to this mark
Myntra has made conscious moves to reach where it is currently. The company has reduced discounts by 6% and the supply chain costs by 5%. It intends to bring down the discounts by another 3 or 4%.
Sales have been largely in Myntra’s in-house brand Roadster. The brands that made the most sales include Roadster, Vero Moda, Nike, UCB and Puma. In-house brands have contributed to 20% of Myntra’s income, and the company plans to take this up to 25% in the next year.
“Online fashion consumers are largely brand seeking. Brands will grow and define the future of fashion and we expect the branded fashion market to grow twice as fast as the overall fashion market in the next five years,” opined Prasad Kompalli, head of ecommerce platform at Myntra.
Myntra’s fashion forum, Style Forum, has also witnessed a spike in interest, with a million visitors in the last month alone.
“The conversion rate is two and a half times, it leads to commerce much more naturally,” stated CEO Ananth Narayanan,
Dreaming of foreign shores
Myntra has ambitious plans to take its operations overseas. It has reportedly created a subsidiary named Myntra Inc US.
Perhaps the company has a plan up its sleeve, as it also says that it will be able to achieve $1 billion sales this year. Hopefully, Myntra will be able to meet its targets and go abroad as well.