Myntra is an e-commerce company of fashion and casual lifestyle items. It is headquartered in Bengaluru, Karnataka, India. The company was founded in 2007 with the aim of selling personalized gift items.
A Brief History
It was started in 2007 by Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena.
In its introductory years, Myntra traded in on-demand personalization of gift items and followed the B2B model. B2B transaction refers to trade among wholesalers, retailers, and other business groups only. Following is the graph of Myntra in its initial years.
In 2010, it started web retailing of clothes. In the same period, it also started trade in customised items. In 2014, Myntra converged with Flipkart to give competition to Amazon that had entered the Indian market in 2013. In this period Myntra started selling over 1000 brands to over 9000 pin codes of India.
In 2015, Myntra shut down its website and operated through the application only. But because of this business model suffered a loss of 10%, it revived its website also. The further growth of Myntra can be seen from the below-drawn chart.
In 2016, it also paired up with the Ministry of textiles to promote handloom industry. Myntra has bought various small companies to extend its reach and to improve its logistics and technological work. Myntra has partnered with over 3,000 fashion and lifestyle brands including Nike, Adidas, Diesel, CAT, Harley Davidson, Ferrari, Timberland, and others.
Business Model of Myntra
The business model of any company is the strategy it uses to gain a larger market space. The chart describes the business model of Myntra in tabular form.
Let us discuss the business model of Myntra.
Value proposition refers to distinct services a company provides that enables it to gain commercial value. Myntra offers a wide selection of products. Other than that, Myntra uses ‘outbound logistics’ as a method of a value proposition. It means it uses a third-party courier service to reduce the lead time. It also has started ‘Alteration Service’ in 2019. It enables Myntra to connect to its customers in offline mode also.
The human resource department plays an important role in the success of Myntra. It focuses on the work-life balance of employees. Additionally, the supplier and wholesalers also are some of the key resources. The staff that comprises delivery persons and IT personnel are also an important resource.
Myntra envisages itself as a fashion portal. It serves as a platform for fashion content, trends, and tips. Myntra has tied up with 3000 brands and offers a high-quality product. Along with this, It also focuses on marketing and sale management.
Ever since it has been taken over by Flipkart, the partners of Myntra have increased. Its partners are different brands that give their product to Myntra for listing. In 2019, Myntra entered the luxury segment by partnering with Purple Style Labs- a luxury brand that sells apparels up to 1.5 lakh. This helps in customer acquisition.
The flow-chart describes the key channels Myntra uses to operate.
The channels through which Myntra operates are its applications and website. It also operates through affiliate programs.
Myntra operates through a self-service platform that is supported by 24/7 customer care service. It has also decreased its shipping time from 48 hours to 24 hours. It ensures it maintains a sound relationship with customers.
Myntra has a massive urban market, and it is very popular among discount lovers. Myntra caters to fashion enthusiasts as it offers as many as 15000 products of one category. Myntra also hosts “End of Reason Sale”, which gathers enormous crowd, according to Aman Nagaram, the C.E.O of Myntra. Such sales and discounts also attract people from tier 2 and tier 3 cities.
Myntra spends most of the revenue in purchasing stock in trade. Additionally, Myntra spends on technology up-gradation and infrastructure improvement. Other than that, it also has to spend on warehouse management and advertisements. Salary to workforce comes under the fixed cost of Myntra.
Marketing Strategy of Myntra
Myntra also ropes in celebrities, like Sonakshi Sinha to promote the brand. It started a show called “fashion Influencer” in 2019 to market the brand more extensively. Other than that, Myntra also uses social media platforms, like Facebook and Instagram, to promote its sale season. In its End of Reason Sale (EORS) 2019, Myntra sold 1.77 lakh items within the first 10 minutes of the sale going live. Over 3.3 million products were sold on day one.
Competitive Strategy of Myntra
Myntra’s top competitors include Yepme, Amazon, LimeRoad, Snapdeal, Voonik, Zopper, HSN, GoRootz, Fynd and Flipkart. The competitive advantage of e-commerce companies is mainly because of cost leadership or product differentiation. With Myntra, it is because of cost leadership. However, before 2010, Myntra also had gained market space in product differentiation by providing customised t-shirts and mugs. For instance, during IPL, Myntra provides t-shirts with a person’s name printed on it.
Revenue Model of Myntra
Myntra earns through an aggregator model. It buys current season merchandise from various brands and makes the product available on its website. It earns through commission. The revenue model of Myntra is that of B2C (Business to customer) now.
Myntra has become a worth competing fashion e-commerce company because of its unique business model and attractive discount offers. Myntra also keeps on revising its business strategies with exigencies of time. It started with the B2B model and shifted to the B2C model. Thus Myntra offers good competition to e-commerce companies, especially in the apparels sector.