BackConsumers looking for value for money, says Myntra CEO
For its upcoming bi-annual flagship ‘End of Reason Sale’ (EORS) event in July, the fashion marketplace is recommending brands to arrive at a price point that will enable better sales conversion
PremiumMyntra customers are opting for more value- for-money shopping in the wake of the ongoing pandemic even though their overall spend has not dropped, said a top company executive at the Flipkart-owned online retailer.
As a result, for its upcoming biannual flagship ‘End of Reason Sale’ (EORS) in July, the fashion marketplace has recommended that brands offer discounts and better prices to push sales.
In the 14th edition of EORS to be held from 3 July to 8 July, the e-tailer expects to connect over 3,000 brands with about 50 million visitors. The event, pushed from June to July due to the second covid wave-led disruption, will be the first major e-commerce sale in 2021.
“As a marketplace, we see how sellers and buyers can be brought together at certain price points. In the upcoming sales, lot of brands will offer 50-80% discounts on products and it will be a value for money driven shopping experience. What we have noticed on our platform is that value of basket size hasn’t reduced but customers expect more. If before the pandemic a customer looked at a specific product in the ₹1,500-2,000 price range, they are now looking at ₹1,000-1,500," Amar Nagaram, chief executive officer (CEO), Myntra said in an interview.
For retail brands, which have been hit hard by the second wave, the sale will be a window to sell inventory before the new fashion season kicks in.
The EORS in December 2020 saw 43 million unique users with 54% new customers from tier-II towns and beyond.
Between mid-May and June, first-time customers on Myntra grew two-fold year-on-year, with smaller cities being among the key growth drivers, especially in north India.
New customer growth has been stronger in the western region at 130% in the same for the period.
Currently 60% of the demand for the company is generated by metros and Tier 1 markets but with significantly higher growth in smaller cities and towns. Compared to first-time users from last year, 9x more users bought smart watches, twice as many users bought headphones and shampoos, and 4X more users bought lipsticks, kaajal, compact and foundation during the May-June period.
“Whenever there was relaxation in curbs, we saw pent-up demand. This year, new user behaviour on e-commerce platforms has been different. Earlier, first-time consumers liked low-risk items consumers. But this time around, we know the e-commerce penetration that happened last year is here to stay," Nagaram said.
Myntra expects ethnic wear, kidswear, beauty and personal care and casual wear to contribute about 50% of the overall demand this EORS. It expects to ship over 15 million items, 40% of which are likely to be delivered to smaller cities. It has also scaled up its tech capabilities to handle the expected scale of the event and will be able to manage over 800,000 concurrent users at peak.
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