One of the most popular shopping website, Myntra may shut down its web presence by the end of this year if it acquires 90% of its traffic from the mobile app. The decision was taken as a result of the exponential growth of the mobile market in India. The news was first reported by Times of India.
According to the report, Myntra gains 80% of its traffic and 60% of its sales from its mobile application. The company aims to take that number to 90% by the end of this year and that is when the presence of the e-tailer’s website would be questionable and it may find tough to exist. If this happens, Myntra would be the first brand to go from a web + mobile format to only mobile.
Mukesh Bansal, the Co-Founder of Myntra & the CMO of Flipkart said that mobile as a medium has grown rapidly for all e-commerce players but it has been more for the fashion e-tailers. He further predicted that the reason for such a huge traction from the mobile platform is mainly because shopping is largely impulse driven. The company is 100% focused on mobile and is making all the investments on the platform, henceforth.
Myntra was acquired by Flipkart for Rs. 2000 crores and they both have successfully crossed the billion dollar mark in the long run. The fashion sales for Flipkart and Myntra are expected to close at $1 billion in sales for the current financial year. Myntra, independently is aiming for a Rs. 2,000 crore sales or GMV. GMV is Gross merchandise value which refers to the overall revenue generated through sales. Out of the total GMV, the e-tailer makes around 5% to 20% depending on the category. Fashion is the second largest category online after electronics which accounts for almost 30% of GMV.
Fashion brands, particularly private brands unlike electronics offer e-commerce players better margins. Due to which, in the long run Myntra will look forward to build more of its own brands in partnership with celebrities. It will also sell its private brands on the other portals instead of hunting for acquisitions in the fashion space.
