Thursday 22 June 2017

Myntra ready for pre-GST sale; anticipates 25X sales, 4X traffic, 20 million users

While online marketplaces Paytm, Snapdeal, Flipkart and Amazon are getting their platform 
GST-ready, fashion etailer Myntra is all geared up for its pre-GST sale.
Flipkart-owned Myntra and Myntra-owned Jabong are both hosting End of Reason Sale (EORS) in the end of June. As GST gets ready to be rolled out in July, Myntra plans to clear its stock before the new taxation rules are implemented.
Myntra’s CEO Ananth Narayanan said,
“Our ‘End of Reason Sale (EORS) gets bigger and better with each passing season. The sixth edition will be the largest yet and will see Jabong also participate. We expect 20 million users to indulge in a shopping spree to pick the finest in fashion at attractive discounts of up to 80% during the three day carnival.”
The 3-day sales event would start on June 24th and end on June 26th. More than 10 million products of 1,800 brands with over 50-80% discounts are going to be part of this EORS edition.

Myntra’s EORS forecast

Just like its parent company Flipkart’s Big Billion Sale, EORS is Myntra’s popular flagship sale event. And the etailer has high expectations from it, in terms of sales, traffic, and customers.
The company’s CEO revealed some of the expectations from EORS June 2017:
  • 45% growth compared to June 2016 EORS
  • 25% hike in sales compared to sales on regular days
  • 4 lakh new customers
  • 2 crore buyers to shop on its portal
  • 4X traffic compared to average days’ traffic
  • Sell over 30 lakh products in 3 days
  • 100,000  Myntra Shopping Groups during the sale

What about the full-price (no discounts) sale events?

Just last month, Myntra placed its bets on full-price sale events to move away from the popular discounting strategy. The company made it clear that more such events are in the offing. But with EORS, the company is back to offering discounts of more than 50%.
When Myntra’s CEO was asked about the same, he asserted,
“End of season is a very fashion-specific event—when we move from spring-summer to autumn-winter, every fashion group, including luxury brands such as Louis Vuitton, does an end-of-season sale. We’ll never get away from doing an end-of-season sale…We’ll continue doing the full-price events throughout the year—the end-of-season and full-price events are not at odds with each other. Both are fashion-specific events.”
The fashion e-player is going to adopt a mix of full-price and discounted sale events strategy. The plan seems to be working because Myntra is quite close to achieving its target of increasing its revenue by 40-50% in FY 2017-18. The etailer is also positive about achieving sales revenue of Rs. 8,5oo crore by the end of this fiscal year.

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