Myntra to delist 200 non-performing brands; Move towards profitability?

Editor | Sep 10, 2020

Bad news for non-performing brands in Myntra – the company will be removing them to make way for the bigger fish. Rumour has it that the ecommerce company is planning to remove 200 brands (about 10%) from its dossier.

A person familiar with the proceedings said anonymously,

“Myntra has a long tail of small brands that are not contributing much in terms of sales. They will focus on bigger brands that will bring more business. The smaller brands take away your bandwidth, and even if you are not paying for the stocks, you have to have a team managing them.”

Sreedhar Prasad, partner ecommerce at KPMG, points out the logic behind this,

“During the evolution period, online players aggressively on-boarded brands and sellers. Now as they are slowly evolving, they are trying to become far more contextual for their consumers.”

On the tracks of a bullet train to turn profitable

Myntra seems to be trying every trick in the book to ramp up. The company recently reopened its website, admitting that its closure was not the best idea. Shorty after that, it went from a fashion only portal to more inclusive one. It looked to add jewellery, furniture and personal care to its arsenal. It recently announced that it would concentrate on private brands including HRX and Roadster. The company also plans to open its first offline store shortly. It also is keen on international brands.

All these moves appear to be calculated and well thought out with the sole intention of turning profitable. Myntra has also won the battle of acquiring Jabong possibly with a view to trimming competition. With its latest plans revealed, it seems like Myntra is serious about its future plans. Discounts are also a thing of the past. If companies start breaking even and making profits, we can safely conclude that Indian ecommerce has come of age. We hope it is sooner than later.

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Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business. 

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