Fashion etailer Myntra will soon add more verticals to its repertoire. The Flipkart-owned app-based company is looking at adding precious jewellery, furniture, and personal care products to its product range. The company seems to be following in the footsteps of parent Flipkart, which has recently added furniture as an important segment.
Come July, and Myntra will open its personal care and jewellery stores.
Furniture – ecom’s newest blue eyed baby
Experts are all in agreement that furniture is a hot cake right now. The industry is worth about Rs. 3,000 crore and is shooting ahead at a 70% growth rate per annum. Similarly in jewellery, online commerce has sold a total of $ 150 million (fashion and fine jewellery) in 2015.
Myntra had been mulling over broadening its product range two years back, but it did not have the infrastructure (live chat for jewellery selling) to launch it. CEO Ananth Narayanan says that the company is taking well thought out measures to attain profitability by 2017. Myntra has already held discussions with around 40 brands in home furnishings.
It is also about the economics, says Narayanan,
“In all these categories, we will be looking at mass premium segment where the margins are high, so it works for unit-economics.”
He also added that the company is targeting sales worth Rs. 500 crores in the next two years from furniture.
However, an ex-employee of the company felt that it might not be a wise move. On condition of anonymity, the person said,
“Since, the margins look tough in the home furnishing category, it does not make sense for a controlled marketplace to diversify into this.”
The recent change in legislations in ecommerce might well be a blessing in disguise, as everyone is now focussing reaching the profitability milestone.