Myntra aims to boost sales from End of Reason Sale by 50%
Bengaluru: Flipkart-owned online fashion retailer Myntra, which is looking to achieve profitability before the end of this financial year, is aiming to grow sales from its flagship year-end event, the End of Reason Sale, by at least 50% from the previous edition, with second-tier towns and cities expected to be major growth drivers.
In an interview on Tuesday, Myntra chief executive officer Ananth Narayanan said that the online fashion retail firm is on track to hit profitability at an operational level by the end of the financial year, with annualized gross sales expected to be around Rs8,000 crore ($1.25 billion).
Myntra, which held the previous edition of the End of Reason Sale in June this year, is bringing the sale forward this year to make it coincide with other year-end sale events, putting it in direct competition with large brick-and-mortar retailers.
Like the previous End of Reason Sale, Myntra has tied up with a vast network of kirana stores, as part of a push to help it speed up deliveries to customers.
Myntra has signed up at least 3,600 kirana stores for the sale event, compared with about 800 stores in the previous edition of End of Reason Sale.
“A lot of innovation is happening around speed—so this time, we’re actually going to do 25% faster speeds than the last End of Reason Sale,” said Narayanan.
“We’ve also improved the tech dramatically. One of the things that we are trying to do is predict who is going to buy what. We’re almost trying to forward deploy and geo-browse. So, we’re actually going to show products that are closer to customers in the sort order, so that customers choose that option more—and therefore, shipping will be faster.”
Myntra also expects its portfolio of private label brands, which includes the likes of Roadster, actor Hrithik Roshan’s brand HRX and Moda Rapido, to generate at least 25% of overall sales during the event.
Myntra, which plans to hold the End of Reason Sale from 22 to 25 December, expects at least 60% of overall sales from tier-2 and tier-3 cities. During the previous edition of the sale in June, Myntra along with Jabong generated roughly Rs430 crore of gross sales over three days.
“We basically are tapping into the Christmas and New Year period right now for this sale -- typically we hold the event in January,” said Naresh Krishnaswamy, chief revenue officer at Myntra. “We’re really making a big push in terms of social shopping -- we had done that last time as well where customers could form shopping groups.”
Like previous season-ending sale events, Myntra is expected to hand out hefty discounts of up to 60% to customers. Top brands that will be sold during the event include the likes of Nike, Swarovski, Tommy Hilfiger, Marks & Spencer and Mango.
Myntra expects at least 30 million customers on its platforms during the sale, with about 75 million shopping sessions -- a growth of about 25% from the previous edition of the sale event.
Earlier this year, Myntra had said that its private labels and brands business had turned profitable. The online retailer expects to hit an annual revenue run rate of $2 billion by the end of 2017-18.