Flipkart subsidiaries Myntra and Jabong play a crucial role in the growing competition of the e-commerce market. The companies continue to be major players in the battle between Amazon and Flipkart.
Myntra and Jabong of the Flipkart Group, plan to invest $300 million over the next three years in order to scale up their market share. Prior to the announcement, Flipkart revealed its plans to be an ‘exclusive’ fashion stop shop and chase a target of $1.7 Billion Gross Merchandise Value (GMV) by the end of FY19. Flipkart subsidiaries Myntra and Jabong also expect to triple their GMV to $4 Billion in three years, from $1.2 Billion in March 2017.
The companies will improve their share of the domestic online fashion market from current 35% to 50%, They also aim on tripling their combined customer base. Myntra’s End of Reason Sale (EORS), gained 500,000 new customers and now expects on becoming Ebitda positive in next three years. Myntra-Jabong CEO Ananth Narayanan earlier stated that Myntra plans to close FY19 with a GMV of $1.9Bn, with addition of private labels and offline expansion. He added that the company would expand its offline presence and add 100 stores in the next two years. Myntra had cut its losses in the year 2017 by 25% from $120.7 Million to $96.06 Million as its private labels became successful. The company’s turnover in FY17 was $314.6 Million which saw a 100% growth in its accessories category. Myntra aims on achieving a year-over-year growth of 200% in FY18.
CEO Ananth Narayanan announced that Myntra’s private labels turned profitable and generated a revenue of $25 Million per month. Its annual revenues go up to $300 Million, accounting about 23% of the company’s total income. Myntra’s private labels include brands like Roadster, HRX, Anouk, and Dressberry. Doug McMillon, CEO of Walmart called Myntra a “piece” of Flipkart that takes advantage of India’s growing youth and middle class population.