Myntra edges ahead in fashion market share battle, hits $2 billion GMV3 min read . Updated: 22 Aug 2018, 10:44 AM IST
The latest numbers for Myntra show that it continues to be the market leader in online fashion over the past six months
Bengaluru: Online fashion retailer Myntra has pulled ahead in the market share battle in the online fashion business, touching an annual run rate of nearly $2 billion (around ₹ 13,900 crore) in terms of gross merchandise value (GMV), according to two people directly aware of the company’s numbers.
Myntra, owned by Flipkart, generated ₹ 1,000 crore in gross monthly sales in July, and expects to report similar sales over the next few months ahead of the upcoming Diwali sales season, the people cited above said, requesting anonymity as these numbers are confidential. These figures include sales from Jabong, a unit of Myntra.
During a month in which a sale event has happened, Myntra typically reports much higher figures than non-sale months, and before July had never touched the ₹ 1,000-crore number in a non-sale month. Myntra typically holds its flagship End of Reason Sale (EORS) twice a year, with the last edition being held in June. In that month, Myntra posted monthly GMV of roughly ₹ 1,200-1,300 crore, the people cited above said.
Gross sales or GMV refers to the value of goods sold on a platform.
The latest numbers indicate that Myntra has grown more than 50% in the current financial year. Myntra’s strong performance has been driven largely by the growth of its private labels business, adding users in new categories such as personal care and faster growth in tier-2 markets. Myntra’s private label portfolio includes brands such as Roadster and Moda Rapido.
Myntra declined to comment for this story.
“Amazon Fashion is the largest online fashion store in India in terms of selection offering a comprehensive mix of Indian and International brands...The biggest fashion brands are actively engaging with us to expand their reach and have achieved 100% of pin code penetration in India with us. Our leadership in selection coupled with efficient Prime enabled delivery and an outreach to 100% of pin codes in India ensures that we are able to cater to the customer expectations," said Arun Sirdeshmukh, head of Amazon Fashion.
In recent interviews Amazon India country manager Amit Agarwal has indicated that Amazon is the market share leader in fashion. “The IMRB data showed that on a standalone basis, we have the largest fashion business in terms of units sold, GMS (gross merchandise sales), customer share," Agarwal said in an April interview.
Myntra’s latest numbers would indicate that it is ahead of parent Flipkart’s fashion business and Amazon India’s fashion unit. Although Flipkart owns Myntra, the two compete with each other fiercely on fashion sales and in recent interviews Flipkart’s fashion head Rishi Vasudev has conceded that there was a danger of the two cannibalizing each other’s businesses.
“Because we are multi-format (retail), are we cannibalizing each other? Yes, there would be some cannibalization, but you’re also ensuring that you’re taking care of different kinds of customers," Vasudev had said in a June interview.
According to the people cited above and a third person, who was a Flipkart executive, Flipkart fashion clocked monthly GMV of roughly ₹ 600-700 crore during the month of July.
A Flipkart spokesperson disputed the sales numbers.
“Flipkart Fashion continues to be the market leader in Fashion and Lifestyle across customers, transactions and value. Last couple of months primarily have contributed to our growth trajectory; as we launched a new customer engagement campaign," the Flipkart spokeswoman said. “We witnessed a meaningful customer growth in metros and also, Tier-3 towns."
Over the past six months, Flipkart has repeatedly claimed that it is the largest in the online fashion segment and had overtaken all its online competitors, including Myntra. Flipkart fashion recently claimed that it closed fiscal 2017-18 with $1 billion in GMV and is set to touch $1.7 billion in terms of GMV by March.