Myntra is India’s leading fashion e-commerce platform, headquartered in Bengaluru. Founded in 2007 by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena, Myntra started out by selling personalized gift items before transitioning into an online fashion retail business.
In May 2014, Myntra was acquired by Flipkart to strengthen its fashion vertical. However, it continues to operate as a separate brand. As of 2022, Myntra offers over 5000 brands and records over 50 million monthly active users. The success of Myntra is largely attributed to its innovative myntra Business Model that provides a personalized and convenient online shopping experience for fashion consumers in India.
Myntra – Founders and Team
Mukesh Bansal – Co-founder and Ex-CEO of Myntra. An IIT Kanpur and IIM Lucknow alumnus, he has also founded several other startups like Curefit and Cult.fit.
Ashutosh Lawania – Co-founder and Ex-Chief Technical Officer of Myntra. An IIT Kanpur alumnus, he has previously worked with companies like Sun Microsystems and Yahoo!
Vineet Saxena – Co-founder and Head of Engineering at Myntra. An IIT Delhi alumnus, he has previously worked with companies like IBM and Texas Instruments.
The current leadership team at Myntra includes:
- Amar Nagaram – CEO
- Ananya Tripathi – Chief Strategy Officer
- Nandita Sinha – CEO, Myntra Fashion Brands
- Ayyappan Rajagopal – Chief Technology Officer
Myntra – Mission and Vision
Myntra aims to democratize fashion in India and integrate technology into the fashion ecosystem. Its vision is to be India’s largest online fashion destination.
The company aims to make online shopping a lifestyle for consumers by offering them unlimited fashion choices from over 5000 brands. It also aspires to empower the fashion ecosystem in India by enabling brands, small & medium retailers, and artisans to leverage its scalable technology platform.
Myntra – Industry Overview
Myntra operates in the fashion e-commerce industry which is a part of the broader e-commerce sector in India.
Some key facts about the fashion e-commerce industry in India:
- Currently valued at $7 billion and expected to reach $12 billion by 2025
- Men’s and women’s fashion make up 60% of the market
- Accessories, footwear and beauty make up the rest
- Top categories are casual wear, jeans & t-shirts, ethnic wear
- High competition with presence of Myntra, Ajio, Amazon Fashion etc.
- Driven by young demographics, rising incomes, growing internet & smartphone penetration
The Covid-19 pandemic gave a big boost to online fashion as people avoided physical stores. Myntra is now among India’s top online fashion retailers along with Amazon Fashion, Flipkart Fashion, Ajio and others.
Myntra – Products and Features
Myntra offers a wide range of fashion and lifestyle products across the following categories:
Women’s Fashion: Western wear, ethnic wear, lingerie, sportswear, winterwear, plus size clothing, jewellery, bags, footwear etc.
Men’s Fashion: Casual wear, sportswear, formal shirts & trousers, t-shirts, winterwear, footwear, accessories etc.
Kids’ Fashion: Apparel, footwear, sportswear, school supplies etc. for kids of all ages.
Home & Living: Home decor, kitchen & dining, bed & bath, home improvement, etc.
Some key features and services offered by Myntra:
- Try & Buy – Order clothes to try on at home before deciding to keep or return.
- Alterations – Get clothes altered as per your size and fit preferences.
- Myntra Studio – Get photoshoots done wearing Myntra fashion.
- Myntra Insiders – Loyalty program with exclusive perks and rewards.
- Myntra Fashion Superstars – Influencer engagement program.
Myntra – Business Model
Myntra operates as an online fashion retailer working on a marketplace model . The key aspects are:
- Inventory – Myntra does not own or maintain inventory. All inventory is owned and supplied by partner brands.
- Assortment – Myntra offers products from over 5000 partner brands covering fashion and lifestyle.
- Platform – Brands showcase and sell their products on the Myntra platform to reach and service customers.
- Logistics – Myntra provides last mile delivery services to get products to customers.
- Payments – All payments are processed by Myntra on behalf of brands.
- Data – Myntra leverages data and analytics to improve customer experience.
So in summary, Myntra is an intermediary that connects fashion brands with customers. It earns mainly through commissions and service fees from brands.
Myntra – Revenue Model
Myntra earns revenue primarily through the following streams:
- Commission Fees – Myntra charges an average commission of 20-25% on sales facilitated through its platform. This is the primary revenue source.
- Shipping Fees – A fee is charged to customers for shipping and delivery of products.
- Advertising Fees – Brands pay fees for advertising on Myntra to increase visibility.
- Convenience Fees – Fees for value added services like alterations, try-and-buy etc.
Myntra also generate minor revenue from Myntra Studio photoshoots, Insiders loyalty program partnerships and more. The company reported annual revenues of ₹5,000 crore in FY 2021-22.
Myntra – Shareholding
Myntra is a fully owned subsidiary of Flipkart Private Limited. In May 2014, Flipkart acquired Myntra for $330 million and Myntra continues to operate as a separate platform with its own brand identity.
Earlier investors in Myntra include PremjiInvest, IDG Ventures, Accel Partners, NEA and Tiger Global. After the Flipkart acquisition, Myntra is now majority owned by Walmart Inc which acquired a 77% stake in Flipkart in 2018.
Myntra – Funding
Prior to the Flipkart acquisition, Myntra had raised total funding of $75 million over multiple rounds from investors like Tiger Global, PremjiInvest, IDG Ventures and others.
Some key funding rounds:
- March 2007 – Undisclosed seed funding from angel investors
- Nov 2009 – $5 million from NEA and IDG Ventures
- Jan 2011 – $14 million from Tiger Global and others
- May 2012 – $25 million from PremjiInvest and NEA
- Feb 2014 – $50 million from PremjiInvest, Tiger Global etc.
Post the Flipkart acquisition, Myntra gets funding from its parent company Flipkart which is in turn funded by Walmart and other investors.
Myntra – Partnerships
Myntra has forged several partnerships to enable growth:
- Roadster Go – Partnership with Roadster to launch multi-channel, online-first sub-brand Roadster Go.
- Brand Partnerships – Tie-ups with over 5000 Indian and international brands to sell on its platform.
- Kirana Partnerships – Partnerships with 15,000+ kirana stores to facilitate deliveries.
- Alterations Partnerships – Tie-ups with local tailoring partners for alterations services.
- Myntra Studio Partners – Collaborations with celebrities for photoshoots at Myntra studios.
- Myntra Insiders Partners – Brand partnerships to offer exclusive rewards, content etc. to loyalty program members.
Such partnerships provide Myntra the scale, variety and reach required in the fashion e-commerce space.
Myntra – Growth
Myntra has witnessed phenomenal growth since its inception:
- Crossed 1 million monthly active users in 2012, 5 years after launch.
- Registered revenues of ₹50 crore in FY 2012-13, growing at over 100% Y-o-Y.
- Acquired market leaders like Jabong and Roadster to boost portfolio.
- Claims 50 million monthly active users with 5000+ brand partnerships as of 2022.
- Recorded GMV of $1.3 billion in FY 2020-21, with 55% contribution via Tier 2 and 3 cities.
- Launched distribution network with 15,000 kirana stores in 850 cities to reach deeper pockets of India.
- Launched private brands like Roadster, HRX, All About You etc. contributing to 30% of revenues.
- Ventured into curated beauty segment with acquisition of C2C platform 20Dresses.
The growth has been driven by younger demographics, rising income levels, increasing internet penetration and strategic acquisitions. Myntra is now among the top fashion e-commerce platforms in India.
Myntra – Competitive Strategy
Myntra relies on the following core strategies to stay competitive:
- Wide fashion assortment – Myntra offers one of the widest selections of fashion and lifestyle products to cater to diverse customer tastes.
- Private brands push – Private brands like Roadster, HRX, etc. drive exclusivity and higher margins.
- Personalization – Features like Try & Buy, Alterations, Myntra Studio etc. add a personal touch.
- Influencer marketing – Engaging celebrities, fashion influencers and bloggers to promote Myntra styles.
- Customer focus – Enabling easy returns, cash on delivery, reward programs, and localized content.
- Omnichannel strategy – Integrating offline stores and kirana partnerships along with online platform.
- Technology innovation – Investing in AI, ML and Big Data to enhance UI, recommendations and logistics.
- Supply chain control – Investing in fully owned fulfilment centres for inventory control and fast delivery.
By providing a comprehensive fashion e-commerce ecosystem catering specifically to Indian consumers, Myntra aims to establish a competitive edge.
Myntra – Competitors
Myntra competes with various players in the online fashion space:
- Amazon Fashion – Fashion vertical of e-commerce giant Amazon.
- Ajio – Fashion portal from Reliance Retail.
- Flipkart Fashion – Parent company Flipkart’s fashion segment.
- Meesho – Emerging rival focused on affordable fashion.
- Limeroad – Fashion social commerce platform.
- NNNOW – Focused mainly on women’s fashion in India.
Myntra’s key competitive advantage is its focus on the latest styles and being a fashion forward brand. It is perceived as a premium fashion portal compared to mass-market players like Amazon and Flipkart.
Myntra – SWOT Analysis
Strengths
- Strong brand recognition and loyalty
- Wide assortment of fashion brands
- Advanced technology and analytics capabilities
- Strong logistics network
Weaknesses
- Limited presence in lower value fashion segments
- High dependency on mega cities and metros
- Negative publicity around deep discounting strategy
Opportunities
- Leveraging social commerce and influencer marketing
- Launching more private labels
- Tapping Tier 2 and 3 cities for growth
- Expanding into emerging segments like maternity, plus size etc.
Threats
- Deep discounting by e-commerce majors like Amazon
- Competition from vertical specialists like Ajio, Limeroad etc.
- Private label push by offline retailers
- Rising customer acquisition costs
Myntra – Marketing Strategy
Myntra employs an omni-channel marketing strategy encompassing the following:
- Television advertising – Celebrity endorsed ads focusing on latest fashion.
- Print advertising – Full page spreads in lifestyle magazines.
- OOH advertising – Billboards and signages at high visibility locations.
- Digital marketing – Google, Facebook ads as well as influencer marketing.
- App install ads – Advertisements prompting users to download Myntra app.
- SMS/email marketing – Regular communication of personalized offers to users.
- Social media – Active pages across FB, IG, YT, Twitter etc. focusing on engagement.
- SEO – Optimizing Myntra website and product pages for search engine discoverability.
- Affiliate marketing – Partnering with publishers, cashback sites to drive sales.
- Celebrity branding – Roping in celebs like Deepika Padukone as brand ambassadors.
Omnichannel marketing helps Myntra reach and engage users across touch points and at various stages of the purchase journey.
Myntra – Innovations and Initiatives
Some of the key tech innovations and initiatives by Myntra include:
- Virtual Fashion Shows – Held virtual fashion shows during lockdown with augmented reality.
- Myntra Studio – Invested in high tech fashion studios to create original style content.
- Try & Buy – Pioneered ‘try at home’ concept in India with this service.
- Myntra Fashion Superstars – Initiative to engage fashion influencers on social media.
- Myntra Insiders – Launched a 10 million strong loyalty program.
- Machine translation – Rolled out machine translation capability to strengthen regional presence.
- Computer vision – Using AI for visual recommendations, smart categorization etc.
- Predictive intelligence – Investments in data science for demand forecasting and inventory optimization.
Myntra – Awards and Recognitions
- Ranked among Best Workplaces in Retail 2022 by Great Place to Work Institute.
- Recognized as one of 100 Best Companies for Women in India in 2019.
- Won Gold for ‘Marketing Campaign of the Year’ at ET Brand Equity Marketing Awards 2018.
- Voted Product of the Year in the e-commerce category by consumers in 2018.
- Won Gold for the ‘Most Engaging Brand on Social Media’ at ET Brand Equity Social Media Strategy Awards 2015.
- Its innovative marketing campaigns have won multiple awards at Abbys, Kyoorius etc. over the years.
Myntra – Investments
Myntra has made strategic investments into various emerging fashion and e-commerce brands over the years:
- 20Dresses (July 2022) – Myntra acquired a majority stake in this fashion social commerce platform oriented towards lower-tier markets.
- HOPSCOTCH (April 2022) – Invested $20 million in this mom and baby care brand.
- House of Masaba (July 2021) – Acquired a minority stake in this celebrity-led fashion brand.
- H&M India (Dec 2020) – Part of a $31 million investment round by Flipkart Group.
- Naadam (June 2020) – Invested $5 million in this sustainable cashmere brand.
- DealShare (Dec 2019) – Invested in this social commerce startup as part of Series A funding round.
These investments help Myntra expand its fashion portfolio and build future strategic advantages.
Myntra – Mergers and Acquisitions
Myntra has made several acquisitions over the years to strengthen its market position:
- Cypheme (Aug 2021) – Acquired this leading omnichannel retailer to enter offline fashion segment.
- 20Dresses (July 2021) – Acquired majority stake in social commerce based women’s fashion brand.
- Freecharge (April 2021) – Acquired this digital payments platform from Axis Bank to bolster payments business.
- Jabong (July 2016) – Acquired this fashion e-tailer for $70 million to gain market share.
- Roadster (February 2016) – Acquired this Indian denim brand to boost private labels business.
- SherSingh (January 2016) – Acquired this online sportswear brand which was later rebranded to HRX.
- NativeSpecial (November 2015) – Acquired customized fashion merchandising platform.
Myntra – Controversies
Myntra has been mired in few controversies during its operations:
- Deep discounts during End of Reason Sale and other events criticized for distortion of prices.
- Accused of commandeering seller accounts to offer deep discounts in violation of policy.
- Allegations around compromised quality of fast fashion private brands.
- Criticism over excessive use of plastic packaging.
- Occasional complaints around delivery issues, returns and exchange policies.
However, Myntra has worked on improving processes to prevent recurrence of such issues. It has democratized fashion while trying to balance affordability and quality.
Myntra – Challenges Faced
Myntra has encountered some key challenges during its growth journey:
- Retaining differentiation – Increasing competition from e-commerce majors like Amazon and Flipkart fashion.
- Profitability pressures – High customer acquisition costs and discounting affecting profit margins.
- Replicating success of private brands – Roadster, HRX etc. succeeded but many other private labels failed.
- Delivering positive user experience – Ensuring seamless user experience across website, app, delivery etc.
- Managing logistics – Building capabilities across warehousing, inventory management and last mile delivery.
- Retaining talent – High attrition rates seen in e-commerce industry in India.
- Compliance burdens – Complex regulatory environment related to commerce, brands, data privacy etc. in India.
However, Myntra has showcased the ability to adapt and evolve its business model to successfully overcome these hurdles.
Myntra – Future Plans and Aspirations
Myntra aims to continue its rapid growth trajectory by:
- Enhancing personalization and customization capabilities using AI/ML.
- Launching more private labels across fashion and lifestyle segments.
- Expanding fashion and beauty offerings targeting Gen Z and millennial segments.
- Growing Myntra Studio into a premium fashion content platform.
- Tapping into ‘Phygital’ by integrating Myntra app with offline store shopping.
- Using Jio partnership to penetrate deeper into Tier 2 and 3 cities.
- Exploring live video commerce to drive greater engagement.
- Investing in sustainability through eco-friendly packaging and supply chains.
The company aspires to make Myntra the top destination for all fashion and beauty needs while sustaining strong growth momentum.
FAQs About Myntra Business Model
What is unique about Myntra?
Myntra differentiated itself through its fashion-forward positioning, wide brand selection, and innovations like Try & Buy, Studio, Insiders program etc. tailored for Indian consumers.
How does Myntra work?
It is an online fashion marketplace connecting customers with brands. It earns commissions by facilitating sales on its platform and also via advertising, shipping fees etc.
How does Myntra make money?
Primary revenue is through ~20% commissions on sales. Other monetization avenues are advertising, shipping fees, Myntra Studio etc.
Will Myntra be profitable?
Despite losses initially, Myntra has shown improving profitability over the years. With scale and optimizing customer acquisition costs, it can achieve healthy profits in the future.
What is business model of Myntra?
Myntra operates a marketplace model, earning commissions by connecting fashion brands with customers on its platform.
What type of business is Myntra?
Myntra is an e-commerce fashion marketplace and India’s leading online fashion brand.
Is Myntra B2B or B2C?
Myntra is primarily B2C, selling fashion and lifestyle products directly to end consumers. But it also enables B2B by allowing small sellers to access its platform.
Does Myntra make profit?
Myntra is not yet profitable, but losses have reduced over the years. With scale and optimized costs, it can achieve profitability.
Which is the biggest competitor of Myntra?
Amazon Fashion and Ajio are emerging as key competitors, along with parent company Flipkart’s fashion vertical.
What makes Myntra unique?
Its focus on latest fashion, innovations like Try & Buy and alterations, private labels, and fashion forward positioning make Myntra unique.
Which brand is owned by Myntra?
Key private brands owned by Myntra include Roadster, HRX, All About You, and Mast & Harbour.
Is Myntra a wholesaler?
No, Myntra is an online retailer, not a wholesaler. It retails products directly to end consumers.
Is Myntra B2C or C2C?
Predominantly B2C, but it enables some C2C selling through Myntra Partner Program that allows small vendors to sell.
Who is the CEO of Myntra?
Amar Nagaram is the current CEO of Myntra.
How does Myntra attract customers?
Through online and offline ads, influencer marketing, promotions, personalized communication, and retention programs like Insiders.
Why Myntra is called Myntra?
The name ‘Myntra’ signifies personalization and customization, just like the words ‘mint’ or ‘minting’.
Why Flipkart merged with Myntra?
The merger provided Flipkart a strong footing in online fashion while Myntra could leverage Flipkart’s resources to scale further.
Who is the founder of Myntra?
Myntra was founded in 2007 by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena.
How big is Myntra?
Myntra has annual GMV of over $1.3 billion as of 2022 and records 50+ million monthly active users.
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