Apparel, footwear and accessories focused e-commerce venture Myntra claimed that it currently has a customer base of 3 million and 400,000 visitors register on a daily basis. This announcement was made by Mukesh Bansal, CEO of Myntra at the company’s Annual Brand Meet which recently concluded in Bangalore.
Products and Avg Transaction Size: Myntra currently offers 21,000 unique products across more than 350 brands and says that it has delivered products in 10,000 pin codes across more than 1200 towns in the country. Myntra claims to have registered 15x growth in the last 12 months and is currently registering more than 7,500 orders on a daily basis with an average transaction size of Rs 1250. Bansal claimed that 85% of brands on the portal have less than 200 retail stores in the country and Puma is currently the highest selling brand on Myntra.
Sales across Geographies: Speaking with Medianama, Myntra’s co-founder Ashutosh Lawania stated that tier-2 and tier-3 cities accounted for 55% of all orders, surpassing metro cities which accounted for the remaining 45% of the orders. This is a significant change for the company which previously saw 50% of all its orders coming from Metro cities in Februrary. Lawania attributed this change to the non-availability of branded apparel in these regions.
Categories: Myntra offers products across various categories like apparel, footwear, and accessories. It recently started selling inner wear/lingerie and jewelry and is planning to introduce home decor and home furnishing in the next 3-6 months. Lawania added that the footwear category is currently accounting for the highest orders on the portal.
Business Model: Bansal said that the company retails products which is currently trending in the current fashion season with majority of the stock being less than 60 days old. He claimed that it is the first online player to launch such a model. He added that the company does only a limited stock couponing since Myntra doesn’t see discount retailing becoming mainstream in the future. Bansal also added that the company also intends to introduce shipping charge in the future although he didn’t disclose any specific information regarding this.
Revenues: Bansal claimed that Myntra is on track to generate $80-$100 million revenue for this fiscal and intends to generate $250 million in the next fiscal. It also hopes to scale up to $1billion revenue in the next five years. The company has raised a total of $40 million since its launch, from investors like Tiger Global, IndoUS, IDG and Accel Partners.
Warehouses: Myntra currently has two large warehouses in Bangalore and Delhi, respectively and is currently looking to open one in Mumbai. It has a distribution network in 9-10 Indian cities and intends to increase it to 18 Indian cities by the end of this month, and 20 cities in the next 3-4 months. Myntra is also hiring its own courier staff to deliver products so as to retain the brand image and experience. Bansal claimed that the company has delivered 80% of its shipments within 24-48 hrs.
Future Offerings: Going forward, Myntra intends to launch various offerings like brand micro sites with custom branding, self service portals for brands, advanced analytics and auto replenishment. The company also plans to launch native mobile apps and a mobile compatible website by the end of this year. Further, it also plans to offer more than 1,000 brands by the end of this fiscal.
Private Labels: Lawania also confirmed that Myntra is looking to launch its own private label by Q3 2012, which according to him, will contribute to a better bottom-line for the company, since the margins in private labels are higher.
E-commerce consolidations: Lawania noted that consolidations are bound to happen when the industry matures with bigger players looking for inorganic growth by acquiring smaller niche players in its segment. When queried if Myntra has any such acquisition plans, he stated that they are open to talks with potential players whenever they see a good opportunity for inorganic growth.