Myntra nears $2 Bn annual GMV run rate: Hasn't it left Flipkart and Amazon behind?

While the whole Indian e-commerce industry is concentrated on the rivalry between Flipkart and Amazon, the fashion vertical has been dominated by Myntra. After setting a firm foot in India and acquired by the largest e-commerce marketplace, Myntra has outnumbered many vertical peers as well mighty horizontals.

Myntra is reportedly leading the fashion segment leaving behind incumbent Flipkart and Amazon by a significant margin. With an annual run rate of nearly $2 billion in terms of gross merchandise value (GMV), the online fashion retailer has broken all the records in fashion sale previously claimed by any of the e-commerce players in India.

Citing sources, a Mint report says that Myntra recorded Rs 1,000 crore in gross monthly sales in July. The fashion e-tailer expects the same pace in terms of sales as its Diwali sales dubbed as End of Reason Sale (EORS) is nearby.

The jaw-dropping estimates by Myntra can be churned out with its last sale (EORS) held in June, where it approximately posted a monthly GMV of Rs 1,200-1,300 crore.

Crossing Rs 1000 crore was a milestone figure for Myntra as it had never crossed that mark in non-sale month.

Jabong, a unit of Myntra also contribute in the aforementioned figures, however, Entrackr sources expect it to contribute 20-25 per cent of the total GMV. Jaobong is owned by Myntra.

Myntra rapid growth is fueled by its private label brands including Roadster, HRX, Anouk, and Dressberry.

In FY17, Industry estimates suggested that private labels contributed 25 per cent of the company’s total revenue. The contribution is expected to rise in the coming sales. During the same period, it had also managed to shrink losses by 25 per cent as compared to the previous financial year.

While the details of FY18 is yet to come, the company is also projected to turn profitable in FY18 with a combination of strong topline and sound unit economics.

Who will win the fashion battle?

Amazon and Flipkart have also claimed to hold the pole position in fashion vertical.  With 35 per cent marketshare, the Walmart-owned company had claimed to achieve $1 billion actual sales (not GMV) in FY18. Additionally, it is set to touch $1.7 billion in terms of GMV in FY19.

On Myntra’s current growth, Flipkart’s fashion head Rishi Vasudev accepted the fact that rivalry in fashion segment is already reducing each others marketshare.

Amazon on the other hand also sees an increased adoption in fashion. It has gone under exclusive tie-ups with brands such as Under Armour and GAP, which saw 6X and 8X growth, respectively.

According to Amazon India country manager Amit Agarwal, the company has the largest fashion business in terms of units sold, GMS (gross merchandise sales), customer share.

While Flipkart is contemplating its omnichannel strategy would garner more users on the platform, Myntra already has ramped up the multichannel strategy with the acquisition of Petr, a Mumbai based end-to-end omnichannel platform for offline retailers.

Further, the company is planning to open an offline store for its private label and eyeing a loyalty programme (like Amazon and Flipkart) to give a tough fight to Amazon and its parent Flipkart.