Myntra has clocked $800 million in annualized GMV in January 2016, taking it closer to the target of reaching $1 billion GMV byFY 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. Also, discounts have dropped by 6% and supply chain cost reduced by 5% in the last quarter.
“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 FY2016-17.” Ananth Narayanan, CEO, Myntra
BUSINESS PERFORMANCE IN 2015
In 2015, three key strategies were adopted which has helped the company to clock growth of 70 % YoY. First, there was a focus on brand mix that appealed to the price conscious as well as the fashion & 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 bang for the buck, be it in marketing or infrastructure.
PERFORMANCE OF BRANDS & CATEGORIES
The focus for 2015 was on building a large portfolio of domestic and international brands. “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,” says Prasad Kompalli, Head – eCommerce Platform, Myntra.
By the end of December 2015, there were over 2000 brands on the Myntra platform, of which 800 new brands had been on-boarded in 2015. The top brands for the year were Roadster, Puma, Nike, Vero Moda & UCB.
The year also saw a growth in Myntra Fashion Brands, led by Roadster, whichbecame the highest performing brand on the platform. Roadster aims to clock Rs.400 crore in 2015-16 &become a $100-million or Rs650-crore brand by end of 2016.The in-house brands saw an increase in contribution in overall revenue to 20% in 2015. The focus area for FY 2016 is to increase contribution of in-house brands to ~25%.
Currently, on Myntra there are more than 30 international brands on the 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 by December end was 5%, which will increase to 15% by FY 2017. The leading international brands were Forever 21, Mango, Antony Morato, Scotch & Soda and M&S.