Myntra sets sight on $1 bn GMV next fiscal
Online fashion platform Myntra has clocked $800 million in annualized GMV in January 2016, taking it closer to the target of reaching $1 billion GMV by FY 2016-2017. Sales volumes for the month were propelled by growth of Myntra Fashion Brands, increased contribution of international brands including new marquee brands such as M&S, Forever 21, high growth in womenswear category and a hugely successful End of Reason sale. Discounts have dropped by 6 per cent and supply chain cost reduced by 5 per cent in the last quarter, the company said in a press release.
“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,” said Ananth Narayanan, CEO, Myntra.
In 2015, the company adopted three-pronged strategy which helped the company clock growth of 70 per cent YoY. First, there was a focus on brand mix that appealed to the price conscious as well as the fashion and brand conscious. Second, the company worked towards greater efficiencies arising out of increasing scale and better management of business processes. Finally, better cost management through a series of rationalization measures have ensured better return on the money spent, be it in marketing or infrastructure.
Myntra focused on building a large portfolio of domestic and international brands 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,” said Prasad Kompalli, Head, E-Commerce Platform.
By the end of December 2015, there were over 2000 brands on the Myntra platform, of which 800 new brands had come on board in 2015. The top brands for the year were Roadster, Puma, Nike, Vero Moda and 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 or 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 25 per cent.
Myntra currently has more than 30 international brands on its platform, including Scotch &Soda, Harley Davidson, Ferrari, Desigual, Forever 21, The North Face, Timberland and Marks & Spencer out of which 25 were added in 2015 alone.
The overall contribution of global brands by December end was 5 per cent, which Myntra expects to increase to 15 per cent by FY 2017. The leading international brands were Forever 21, Mango, Antony Morato, Scotch & Soda and M&S, the release said. (SH)
Fibre2Fashion News Desk - India