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Myntra Aims To Become Profitable By Early Next Fiscal, Says CEO Ananth Narayanan
It has also crossed $1billion run rate in annualised GMV post discounts in July 2016 making it the first Indian fashion brand to have touched this benchmark
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Unlike many e-commerce companies that position themselves as technology companies, Ananth Narayanan, CEO of Myntra would like to retain Myntra’s image as a fashion brand where technology is a key enabler. Myntra is clear that consumers don’t buy their technology and the algorithms only help them sell the right fashion to its consumers. Narayanan feels it’s an “inflection point” for Myntra which is now focussed on both scale and profitability. Not one versus the other.
Putting an end to the debate on the company’s profitability, Narayanan said Myntra aims to become profitable by early next fiscal as it’s in a growth trajectory clocking $1 billion run rate in annualised gross merchandise value (GMV) post discounts in July this year. The growth is being driven by Myntra fashion brands, increased contribution of international brands, high-growth in sportswear and womenswear category, and a “hugely successful” end of season sale.
Myntra is also targeting strong growth in new segments such as home furnishing, re-launching its personal care business and expanding its sales of fine jewellery. Home furnishing currently contributes about 1 per cent to their revenue but it is growing at 50-60 per cent on a monthly basis.
In January 2016, Myntra had clocked $800 million in annualised GMV. Myntra said its focus on key strategies helped the company grow 70 per cent year-on-year in the first four months of the fiscal. “These include a focus on a brand mix that appealed to the price conscious as well as the fashion and brand conscious,” the e-tailer said.
“We have now surpassed our January benchmark to make July 2016 the biggest month ever for Myntra. The annualised GMV run rate of $1 billion puts us on the path to touching the $1 billion GMV mark in a fiscal,” Narayanan said.
Myntra which recently acquired Jabong expects to jointly shape the Indian fashion ecosystem and plans to benefit from keeping the two brands separate for now. Narayanan said that the fashion e-tailing market is large enough for both brands to coexist. Myntra and Jabong will use technology integration and deep consumer insights to develop partnership with brands to increase branded sales in India at full price. This is in the backdrop that Myntra expects the branded fashion market to grow twice as fast as the overall fashion market in the next five years.
Myntra has also shared its intention to experiment with offline stories in the next three months by selling its own brands Roadster, HRX and All About You. “This omni channel strategy will provide tech-enabled enhanced shopping experience. The omni-channel strategy is expected to improve confidence in online shopping and accelerate the number of customers converting from offline to online shopping,” the e-tailer said.