New sellers join Myntra. Meanwhile its top seller Vector records increased revenue & loss
FollowingFlipkart’smove toreduce its dependence on WS Retail, its subsidiaryMyntrais also taking similar steps. The company has included three new third party sellersto the existing Vector E-commerce to comply with the FDI laws. According to a filing with the Registrar of Companies (RoC) Myntra has added Shreyash Retail, Health and Happiness and Tech Connect Retail as its sellers.
About time too, asVector has posted a 40% increase in its revenuefor the year 2016. However, like its compatriots, Vector has also notched up a loss of Rs 8.7 crore. The company attributes its loss toheavy discounting and increase in its inventories. In a statement,it said,
“With a view to enhance its margins and profitability, the company (Vector) is actively engaged in tying up with emerging brands which yield better margins in the retail segment when compared to established brands.”
American ecommerce bellwetherAmazonhad also directed attention away from Cloudtail (its majority seller) byon boarding other sellers, particularly for its smartphone segment, to adhere to the FDI.
Things will get better for Myntra this year
2017 is going to be better for Myntra, saysHarminder Sahni, founderof business consultancy Wazir Advisors.He says,
“During that period (FY16) competition got tougher. Players such as Amazon and Flipkart also got very aggressive on the fashion category. Also brands had started reacting to heavy discounting, which forced them to discount from their pocket. This year should be better for them (sellers) since Myntra is now available across all channels.”
Working towards profitability
Myntra recentlymoved in withJabongto cut expenses on office space. The two companies alsoclubbed their incomes(after the merger) to attain a greater figure. Perhaps all this is to take it closer to itsdream of profitability, which it aims to reach by 2018.
The company’s recent measures coupled with Sahni’s assurance leads us to think that profitability in 2018 might just be possible for Myntra.