Business Saga

Decoding the Business Mantra behind Myntra

By Prerana Singh

The very first thing that comes to one’s mind when we talk about fashion and e-shopping is none other than Myntra. Myntra is definitely India’s favorite shopping platform for consumers who believe in high fashion and quality of course. It began its story by selling personalized gifts on its website and today it leads the online fashion world.

Along its remarkable journey Myntra acquired a lot of subsidiaries that helped in growing its big business.

MYNTRA – An Overview of the India E-Commerce Fashion Giant

Myntra, an Indian e-commerce fashion corporation is headquartered in Bengaluru, India. The company was founded in 2007 by Mukesh Bansal along with co-founders Vineet Saxena, and Ashutosh Lawania.

From 2007 to 2010, it primarily operated on the business-to-business model (B2B), selling on-demand personalized gift items.

Later, Myntra began promoting fashion and lifestyle products and drifted from personalization in the year 2011.

By the year 2012, Myntra scaled new heights by offering wide range of products from 350 Indian and International brands which made it even more popular among the Indian online market.

Myntra—Business Plan

The focal business map of Myntra is to buy the latest goods and selling it to the customers. It focused on purchasing current season merchandise from several popular and quality brands, and making the product/item available on its website. The main earning of Myntra comes from the commission. Myntra follows the B2C (Business to customer) model to generate revenue and increase its sales.

MYNTRA—Facts & Figures

Flipkart acquired Myntra in 2014 for a record-breaking deal valued at ₹2,000 Cr ($280 million), under the shareholders Tiger Global and Accel partners.

At the time of acquisition by Flipkart, Myntra had a total of 1,50,000 products of over 1000 brands, catering to over more than 9000 pin codes in India.

Ananth Narayanan became the Chief Executive Officer (CEO) of Myntra replacing co-founder Mukesh Bansal in 2015.

On 10th May 2015, Myntra announced to shut down its website to solely focus on serving its customers through mobile applications starting from 15th May 2015. This decision resulted in a big failure and incurred tremendous loss.

Accepting the crash of the application-only model, Myntra announced to revive its website in Feb 2016.

Myntra functions and operates independently after the attainment by Flipkart and carries out its operations as a standalone brand under Flipkart by solely focusing on fashion-conscious clients.

Revenue Model

Myntra runs an aggregator business model (B2C), by procuring multiple brands under its banner. It primarily focuses on obtaining the latest merchandise from the most popular brands and makes them easily accessible on the portals for its consumers.

Value Chain Analysis

At Myntra, Value chain analysis involves a set of activities in order to deliver a valuable product.

  1. Firm Infrastructure: The basic requirement for Myntra was for its icon and office to reflect youthfulness and freshness while incorporating fashion as its theme.
  2. Technology: Its technology allows online retail to be possible by hosting the website in which the customer can browse through the online catalogue, choose the desired product, make online payment and receive goods at their respective doorstep.
  3. Procurement: They take delivery of finished goods from various brands, store them at their various warehouses and then ship them to the customer when ordered.
  4. Outbound logistics: It is one of the critical activities for Myntra as they use a third party courier for their outbound logistics. It is their responsibility to give the demanded product to the third party courier as soon as possible. They then keep track of the lead time and try to reduce it with collaboration from Courier Company.
  5. Marketing and sales: It is the core activity of this online shopping giant. It markets its products through online adverts and of course through tons of discounts and offers on a daily basis. It has been quite successful in creating awareness among customers and enhancing their online shopping experience. Its sale has doubled ever since it began attaching top brands to its name.

MYNTRA—Subsidiaries

The Important and Deal breaking Acquisition under Myntra are:

1. HRX

2. Jabong

3. Fitiquette

4. Roadster

MYNTRA Acquisitions

Here, we’ve tried to mention some of the companies acquired by Myntra, their functioning, and operation under Myntra.

Fitiquette

Fitiquette is the world’s first virtual dressing room platform that enables online shoppers to virtually try before they buy option. It provides an online shopping experience that is very similar to the offline model like buying from the stores.The technology used in Fitiquette shows virtual mannequins based on the body types of the users. 

Roadster

Myntra also owns the fashion brand Roadster, Myntra’s outdoor lifestyle brand which was launched in December 2012. It generates close to 7% of the total sales.

Myntra’s lead designer for the Roadster brand is the famous Vanni Lenci. Roadster has launched an all-new licensed Roadster MotoGP collection.

It is quite surprising that, despite having big brands in its pocket, Roadster is the biggest profitable subsidiary for Myntra.

PRETR Online Services Pvt. Ltd.

Pretr Online Services Pvt. Ltd. is India’s first-ever end-to-end omnichannel platform for retail. Pretr (prettier) was launched in 2016 by two technology executives Bhavik Jhaveri and Ankur Joshi. Pretr is currently operating from Mumbai, India.

Pretr is a marketplace that provides a seamless shopping experience to customers. It is an efficient selling platform to Fashion & Lifestyle Retailers which include Esprit and Mango. Myntra’s own private labels such as HRX and Moda Rapido uses Pretr’s technology platform. This technology platform helps retailers with a bunch of services, including order management and store analytics.

JABONG – It rode a rocket but landed in Myntra and flip karts arms

 Jabong was a private company that was located in Gurgaon, Haryana. It was launched on 23 September 2011. It operated only online fashion and lifestyle stores. It sold various products ranging from clothing, bags, shoes, sunglasses, jewelry, watches, and many more.

Jabong was acquired by Flipkart in July 2016 through its ecommerce unit Myntra for $70 million. Flipkart formally shut down Jabong in February 2020 to shift focus completely on its premium clothing platform Myntra.

HRX is a 5-year-old brand and platform based on a life philosophy to keep pushing. HRX is India’s first celebrity brand that was founded by Hrithik Roshan who is also the brand ambassador for HRX. It is also India’s first homegrown brand that solely focuses on the sports and active lifestyle space. HRX was acquired by Myntra, the online fashion store owned by Flipkart on Jul 20, 2016. It acquired a 51% stake in HRX.

MYNTRA- Other Acquisitions

Myntra acquired Mobile app development company Native5 in April, 2015 in order to strengthen and expand Myntra’s mobile technology team. It also acquired mobile-based content aggregation platform, Cubeit, for strengthening its technology team in July 2016. It is also significant to note that the Myntra partnered with the Ministry of Textiles to promote the handloom industry in October 2017.

It also acquired, InLogg, a city-based technology platform that provides end-to-end logistics solutions for the e-commerce sector in October 2017.

Myntra—Major Investors

Myntra’s major Investors today are Accel Partners, New Enterprise Associates. Tiger Global Management, Sofina, Kalaari Capital, IDG Ventures India, PremjiInvest.

Conclusion

Myntra is India’s favorite shopping destination where quality meets perfection. It appears to have a competitive advantage to others, as in case of IPL T-shirts the buyer can get his/her name imprinted which relates to its original idea of selling customised t-shirts, mugs and other products in 2009 clearly allowed it for product differentiation and it carries its customer segmentation in the form of ‘End of Reason Sales’ it attracts an enormous crowd.

It is one of the most reliable online shopping sites as the products go through a thorough quality check before being sold. Myntra’s revenue model is B2C (Business to customer). Additionally, it has been observed that this e-Commerce giant spent a huge money for technology up gradation and infrastructure. It would be worthwhile to note that it poses a huge competition to other platforms especially in terms of apparel. 

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