Thu. Mar 28th, 2024

Myntra and Jabong are both ready to grow and capture a bigger market share in the domestic online fashion market. They have decided to invest a total of around ₹20,600 crores ($300 million) over the next three years. This move comes soon after Flipkart, their parent company was acquired by Walmart in a massive deal.

Myntra is an online fashion e-commerce retailer, it was founded by Mukesh Bansal in 2007. It was later acquired by Flipkart in 2014. Jabong is another online fashion e-commerce retailer based in Bengaluru, it was founded by Praveen Sinha in 2012. Jabong was acquired by Flipkart in 2016.

Both Myntra and Jabong have been on a steady growth trajectory, together they make up 35% of the domestic online fashion market. Their target market share is 50% for the coming years. They also plan to triple their current customer base along with tripling their GMV from ₹820 crores ($1.2 billion) to (₹2,700) $4 billion in the next three years.

In the recent End of Reason Sale, Myntra-Jabong CEO, Anantha Narayanan claimed Myntra had added 5,00,000 new users. There are also plans to launch 100 offline stores for the fashion units in the next two years. Myntra is expecting to be Ebitda positive in the next three years. The offline stores, private labels and franchise stores are expected to increase Myntra’s turnover.

According to Technavio, the online fashion retail market is expected to grow at a CAGR of around 63% by 2020. In another report by Technopak, Indian apparel market is poised to grow at CAGR of 9% to $102 billion by 2023.

Flipkart’s subsidiaries Myntra and Jabong are the clear leaders in the online domestic fashion industry and this new investment puts them ahead of its rivals for now. Amazon currently has an online domestic fashion market share of about 15% but Amazon is known for its competitive spirit and it might be planning a comeback in the online fashion market.

By Varun

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