Myntra aims to hit $2bn in revenue run rate next year; looks at AI for personalised experience
Myntra witnessed 80 per cent year-on-year growth with an industry leading revenue run rate of $1 billion. It’s reportedly aiming to hit $2 billion in revenue run rate and turn profitable by the end of 2017-18 fiscal year
Flipkart-led fashion portal Myntra appears to be in a comfortable place after it witnessed 80 per cent year-on-year growth with an industry leading revenue run rate of $1 billion. It’s reportedly aiming to hit $2 billion in revenue run rate and turn profitable by the end of 2017-18 fiscal year, by rapidly growing user base.
The acquisition of Jabong earlier this year for $70 million and the recently concluded festive season have attributed to this growth and strengthened Myntra’s position on its path to profitability. Ananth Narayanan, CEO of Myntra and Jabong said, “We are at the forefront of fashion in India today with over 18 million monthly active users between Jabong (13 million) and Myntra (5 million). Our unique approach to leverage technology to decode fashion has helped us become the fastest growing online fashion platform. Myntra, Jabong and Flipkart together have 70 per cent market share in the country today and will continue to grow this by empowering brands and customers. We are on track to achieve scalable and sustainable growth and will be EBITA positive in FY18.” According to reports, Myntra grew 80 per cent YoY.
Myntra partnered with Glispa and other partners to ensure that a lot of new, high-quality users entered the app before and during the sale. Alongside its sustainable user acquisition strategy to get more users into the app, Glispa was able to increase the number of new downloads fourfold in a short amount of time through its network of direct partners and proprietary native inventory. This improved the app’s ranking in the Google Play Store and increased the number of users downloading Myntra's app organically.
Consumer experience is the focus area currently as the fashion retailer is reported to launch a mobile app-based chat support service for customers this week to enable users and the listed brands to interact. It is also using customer data to create personalized stores and curating clothes based on fashion trends. The company will also launch iconic global fashion labels Hugo Boss and Hackett on its platform.
The portal also aims to use smart technology such as Artificial Intelligence and Machine Learning for a personalised shopping experience, better product discovery and assisted buying. Several features have been introduced which resulted in Myntra being 20 points ahead on NPS (Net Promoter score) -- an indicator of customer satisfaction-- than the industry. According to reports, Narayanan wants its NPS to improve to about 60 per cent by the end of the next financial year from the current 50 per cent. To its brand partners, Myntra provides brand performance and analytics support, customer insights to develop a loyal fan base and enable engagement. In line with this, it has launched a new portal which will provide brands with customized insights and competitive intelligence reports to manage their performance on the platform.
Most innovation is reported to trickle down from the app to the desktop as the mobile phone contributes to 80-85 per to revenues according to Narayanan. It needs to be noted Myntra which went app-only last May took a u-turn to launch its desktop version couple of months ago, ending the company’s push to become the world’s first app-only marketplace.
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