Myntra, Jabong’s EORS wish-list: Surge in sales, web-traffic and customers

Editor | Jun 25, 2021

Myntra, Jabong’s EORS wish-list: Surge in sales, web-traffic and customers

Flipkart’s fashionable adopted offspring Myntra and Jabong are gearing up for the grand End of Reason Sale (EORS) in the first week of January. While Myntra’s EORS would enter its fourth year in 2017 (started in 2014), this is Jabong’s debut.

Jabong & Myntra get ready to take on the fashion world

Home-grown etailer Flipkart acquired fashion etailer Myntra in May 2014. Two years later Myntra with Flipkart’s support acquired Jabong in July 2016.  The trio together now controls nearly 80% of the online fashion market.

Many wondered if Jabong would participate in Flipkart’s Big Billion 2016 sale but it didn’t due to unpreparedness. But in the coming year the fashion etailer is going to participate in Myntra’s flagship sale to be hosted from January 3rd to 5th.

Jabong’s Chief Business Officer Rahul Taneja exclaimed,

“Jabong is excited and geared up to be a part of the iconic End of Reason Sale with Myntra. EORS has now become an annual high point for online fashion shoppers, and this is the first time we will be hosting this event on Jabong.”

The Expectations

Myntra is expecting to increase its sales by 25 times during the 3-day shopping event. And Jabong is hoping for 5X growth in sales. Both the fashion etailers are also anticipating huge surge in website traffic and new customers.

Myntra’s CEO, Ananth Narayanan declared,

“EORS is the single largest fashion sale event in the country and we expect to clock in double the sales this time than the previous edition of EORS. Our platforms are geared to serve over 15 million customers and deal with a whopping 470% increase in traffic over a normal day.”

The Prep

Besides using technology to geotag its warehouses for EORS, Myntra has also increased the capacity of its logistics unit to handle high volume of orders.  The company has added 1000 people to its delivery team, increased its inventory by 40% and would offer 50-80% discounts on private labels & high-end brands.

“We are committed to provide an exceptional shopping experience to our customers and have strengthened our logistics team to be able to make 4 lakh deliveries per day to over 13000 pin codes across the country. We expect to deliver 50 lakh products by the end of the sale,” Narayanan shared.

As for Jabong, the etailer has partnered with several national & global brands such as ASICS, Dorothy Perkins, Mizuno, GAS, Aldo, Hummel, Steve Madden, Mexx, Tom Tailor, Benetton, and New Balance to offer discounts of up to 80%.

What will be the result?

The FY 2015-16 wasn’t that great for Myntra in terms of overall growth. Myntra’s revenue increased from Rs. 773 crore in FY 2014-15 to Rs. 1,069 crore in FY15-16. But the losses increased from Rs. 741 crore in FY 2014-15 to Rs. 816 crore in FY15-16. The fashion etailer’s sales growth rate was only 38% compared to previous years’ 75% and up. Flipkart’s FY2016 report isn’t impressive either.

Myntra’s last EORS was a success so was parent company Flipkart’s Big Billion sale. This is the first time the ecommerce biggie is going to use its fashionable advantage. But would it work? Would the 3-day sales of Myntra-Jabong rake in moolah? Would it help to reduce the gap between revenue and losses?


About Author

Editor

Editor

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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