Flipkart’s fashion division Myntra says it aims to turn “profitable at scale” in the coming fiscal year while increasing contribution of in-house brands to 25 per cent.
The company said it clocked $800 million in annualized GMV in January 2016, taking it closer to the target of reaching $1 billion GMV by FY 2016-2017. In its bid to attain profitability, the company has said discounts were cut down by 6 per cent and supply chain cost reduced by 5 per cent in the last quarter of 2015.
According to Ananth Narayanan, CEO, Myntra, “January has been the biggest month ever for Myntra. I am happy to share that we have achieved an annualized GMV of $800 million. Our focus for the year will be to attain positive gross profit while maintaining scale during the year. We plan to build on the momentum in the first month to touch $1 billion GMV by FY 2016-17.”
The company said it saw growth of 70 per cent YoY in 2015.
“Online fashion consumers are largely brand seeking. Brands will grow and define future of fashion. We expect the branded fashion market to grow twice as fast as the overall fashion market in the next 5 years. We now plan to be profitable at scale in FY 2016-17, with consistently high growth rates,” says Prasad Kompalli, Head (eCommerce Platform) of Myntra.
By the end of December 2015, there were over 2000 brands on the Myntra platform, of which 800 new brands had been on-boarded in 2015. The top brands for the year were Roadster, Puma, Nike, Vero Moda & UCB.
The year also saw a growth in Myntra Fashion Brands, led by Roadster, which became the highest performing brand on the platform. Roadster aims to clock Rs 400 crore in 2015-16 and become a $100-million (Rs 650 crore) brand by end of 2016. The in-house brands saw an increase in contribution in overall revenue to 20 per cent in 2015. The focus area for FY 2016 is to increase contribution of in-house brands to approximately 25 per cent, said the company.
Currently, on Myntra there are more than 30 international brands. The overall contribution by December end was 5 per cent, which is expected to increase to 15 per cent by FY 2017.