Online fashion retailer Myntra is aggressive about its growth. The Bangalore-based e-retailer, which recently raised $50 million in a financing round led by Premji Invest along with new and existing investors, is only focused on fashion retailing. Apparel, footwear and accessories are the only three categories that the Bangalore-based company offers. Myntra is determined to grow within these categories only.
Moreover, to maintain its leadership in the fashion retail space, Myntra is investing to create more interactive content via blogs on style trends and giving suggestions on the website. The site has adopted a cool and stylish look where users can read about various styling options. “We talk about how to dress yourself, which are the best products to wear in the current season, which shirt goes best with which trouser, etc. We would like to go beyond just retailing, and this strategy will help in increasing our average ticket size”, saysAshutosh Lawania, Co-founder, Myntra. The interactive content, Myntra claims, has been a good relationship builder with female customers who come back to read the blogs regularly, get engaged, and at times, end up buying too. The retailer is also looking to collaborate with well-read fashion bloggers to further its goals.
Lawania believes that even though online retailing poses a number of challenges, smartly using technology can remove some of them. In a business where a customer cannot touch and feel products before buying, ideas such as ‘try n buy’ can really ease customer’s worries, but it needs a robust back-end and logistics support to work well.
At the same time, online shopping portals have a wide product catalogue that makes it a challenge to showcase right products to right customer. “Intuitive navigation plays a big role in ensuring that customers, who come on Myntra, choose from products that suit to their tastes,” elaborates Lawania.
Switching to a hybrid model
Similar to Flipkart, Myntra too is launching its marketplace by April, in a move aimed at earning profits and expanding its reach in India's small towns and cities. The retailer is one of the largest among online portals to take this route and expects to have about 500 vendors signed up within the first year of its operations. The founders expect that a fifth of the company’s total business to come from the marketplace over the next one year. The strategy is aimed to promote small, unorganised brands and enable their visibility on a larger scale across the country while increasing product offerings on the website.
India’s $3.1 billion e-commerce market (excluding online travel) is expected to grow by over seven times to $22 billion in five years, says the CLSA report. Myntra aims to capitalize on this growth opportunity with its compelling business model, product innovation and dynamic leadership. The company receives 500,000 unique visitors everyday and sees an average of 15,000 orders per day with average ticket size of Rs 2,000. Myntra is also in the process of developing its m-commerce app that will be available to customers soon.