Blog submission 1

Dear Sir,

Please find below my blog submission 1:

Myntra's mantra for success

Started in 2007, Myntra today is having revenues in excess $100 million/year with a CAGR of 20%, shipping a whopping 20,000 items daily in over 400 cities. In the wake of profitability issues being faced by the e-tail in India, Myntra.com is the first major e-retailer to breakeven. But the success of Myntra hasn't been come without its share of challenges. From facing cash crunch in 2008 (recession) to changing business model and facing ever growing competition in the e-commerce in India, Myntra has fared well against all such perils.

Myntra started out as a personalized product e-retailer (T-shirts, mugs, greeting cards, calendars, key chains, diaries, wine glasses). Later in 2010, it changed its business model focusing on fashion and lifestyles products. Quite interestingly, when all of India's e-commerce is shifting to a marketplace model, Myntra is still stuck on the more expensive 'inventory led' model and still has been able to tame the challenge of profitability and is the first e-retailer in India to breakeven.

There are various factors that have contributed to the success of Myntra.

Myntra has maintained a strict focus on apparels and casual lifestyle products. Unlike Flipkart, it has restricted itself to only few categories (lifestyle and fashion). These categories are high margin categories (40% margin) which have helped Myntra to maintain profitability.

Myntra has used a combination of third party logistics and its in-house logistics service to deliver products. For some tier 2 and tier 3 cities, where reach is difficult and expensive, Myntra has relied on third party logistics while for Tier 1 cities it has relied on its in-house logistic service. Tier 1 cities contribute 45% of Myntra's revenue.

Myntra has clung to inventory-led model which, albeit expensive, has helped Myntra provide high quality service to its customers.         Myntra has a tie-up with 350+ brands with which it refurbishes its inventory efficiently. Myntra returns its entire unsold inventory, thus helping reduce costs further.

Though there are many subtleties that have helped Myntra crack the e-commerce code in India, aforementioned concepts are some of the major points that have contributed to Myntra's success in a huge way. 

Regards,

Sushant Aggarwal

12DM-148 -- E-Business Section B