- Angela Gonzalez-Rodriguez |
The dominant online fashion retailer in India has set an ambitious goal for itself: Myntra aims to increase gross sales by 90 percent to Rs.5,000 crore, net of discounts, by the end of the current fiscal year.
As revealed by the e-tailer, the plan to achieve such an ambitious objective is simple: improving its product selection, and adding new categories and re-opening its desktop website. The company won´t spare in costs either, focusing on improving discounts and its logistics.
In a recent interview, the CEO of the company, Ananth Narayanan, explained that Flipkart Ltd online retail arm is on track to lowering its cash burn rates for the year ending March 2017 after keeping them constant last year.
In this vein, ‘Livemint’ recalls that documents filed with the Registrar of Companies (RoC), show Myntra’s reported net loss of Rs.729.2 crore for the year ended March 2015.
“We’ve streamlined costs in a big way. By improving our product selection, we’ve managed to cut discounts significantly,” Narayanan said to local media earlier this month.
This strategy responds to the increasing need for the retailer to differentiate itself from main competitors, especially Amazon.
“We’ve cut the long tail and added more big brands, and styles within big brands that have the highest sell-through rates. We’ve added top local and international brands like Louis Philippe, Forever21, and Marks & Spencer that are not available anywhere else and these brands are doing really well for us. We’re using data to figure which brands and styles have the highest sell-through rates. The number of styles (200,000) in our existing categories has stayed the same and will stay the same, but our revenue per style has gone up dramatically,” Narayanan said in this regard.
Myntra, which became an app-only platform in May 2015, has been forced to re-open its website because it had been losing customers to Amazon India, Flipkart and others over the past year, recalls ‘Livemint’.
Now, Myntra expects 15-20 percent of its sales in the current financial year to come from the desktop website.