Online fashion portal Myntra has launched a social shopping feature ahead of its sixth End of Reason Sale (EORS) which will run from June 24-26. Myntra Shopping Groups will offer an additional 15 per cent discount valid for six months after the sale concludes.
Part of the Flipkart group, the portal expects four lakh new customers to log in during the three-day event typically timed ahead of end-of-season sales across offline stores.
“A discount of 50-80 per cent has always been our call-out for the EORS as almost all brands offer sales around this time. Put together, the January and June EORS contributed 20 per cent to Myntra-Jabong combine’s annualised gross merchandise value (GMV) for 2016-17,” Ananth Narayanan, chief executive, Myntra and Jabong said.
Myntra-Jabong posted a GMV of $1 billion for 2016-17 and is targeting $1.4-1.5 billion for the financial year ending March.
Narayanan said Myntra expects a 45 per cent increase in gross sales -a 25x jump in daily sales on Myntra and a 15x jump on Jabong -compared with EORS of June 2016 and has also brought down marketing spends by 10 per cent. “Our return on investment in marketing has improved,” he said.
During the sale event, Myntra expects private labels to make up for 21 per cent of sales while on non-sale days, the share of sales coming through private labels on the portal is close to 25 per cent. Myntra has also launched its private labels on Jabong starting early this year, including brands like Roadster, HRX, Anouk and others.
Jabong’s private labels are likely to contribute 7-8 per cent share of sales. Overlap of customers between the two portals is currently at 27 per cent, creating a differentiated audience. Around 1,800 brands will be a part of the EORS. Myntra has also added 800 kirana stores as part of its additional delivery network ahead of EORS. “This will help Myntra logistics handle close to 55per cent of peak sale numbers, Narayanan added.
– Apparel and Textile News, Apparel Talk, Indian Apparel
