The race for dominance is a never ending battle in online retail. Acquisition and expansions are essential to stay ahead. Myntra recently stole Jabong from Snapdeal and gave Flipkart 70% control over online fashion retail. Now sources say the two online fashion platforms, Myntra and Jabong, will be combining their total revenue.
Myntra wants to maintain a combined net revenue of over one billion dollars by next year. The net revenues of both ecommerce companies was estimated at $500 million last year. Myntra and Jabong fall under Flipkart and the etailer has given both marketplaces a mandate of growth. As a result, the aim behind this revenue expansion tactic is to achieve maximum growth in the shortest amount of time.
In spite of the acquisition, Myntra and Jabong function independently. However, the fashion portals have the same chief executive maintaining their affairs. Senior management at each firm is now planning a common strategy for both platforms.
A senior executive mentioned, “The pressure is on growth and increasing of combined revenues. The senior management is trying to bring synergy between the two companies in areas such as tech, data analytics and also having centralised design centres for both, All this would be achieved in a few months; the work is on”
Jabong hasn’t declared its festive sales plans as yet. But according to the executive, the fashion etailers are keeping their strategies different this festive season.
Flipkart, on the other hand, has already taken multiple steps to ensure the festive shopping season doubles its revenue. Flipkart will offer credit to sellers against discounts this festive season since it cannot offer discounts. The etailer also joined forces with sellers to broaden its reach. And froze product prices to make the products on its platform as attractive as possible.