India’s largest online shopping hub for branded clothes and accessories Myntra.com is planning to wipe out its website presence completely. At a juncture where both Flipkart and Myntra’s sales figure hit the BIG $1 billion mark the later is planning to do away with its website presence on the desktop and laptop format. This is seen as a massive changeover where the first major online retailing company is trying to adapt the ‘mobile-only’ format due to the increasing usage of smartphones and mobile/ portable device Internet in India.
Sales…where do they come from?
Being one of the first strikers in the online retailing segment, Myntra acquires 80% of its traffic and 60% of its sales through mobile phones. The company is predicting to hike the percentage of traffic to 90% through mobile application by the end of 2015 which is seen as a possibility even by the experts from the online retail industry.
The top management of the company has clearly issued a statement that they are completely focused on getting the mobile application work even better for them. There are talks of huge undisclosed investments done recently for the same. Both the brands together are expected to close at $1 billion in sales for the current financial year. Importantly, Myntra.com alone has crossed 2,000 crores INR GMV (gross merchandise value) at a monthly average of 300 crores INR.
GMV-What’s it’s all about?
GROSS MERCHADISE VALUE in e-commerce jargon is an online retailer’s overall income generated by selling goods on the platform. Basically e-trailers gross anywhere in the range of 5%-20% GMV depending on the category the website falls under.
Mobile transaction has grown in an exploding manner, last year the business contribution to online retail platforms was about 5%-10% whereas the same this year has raised to 50%. Fashion-the category that includes footwear and accessories retail is the second largest segment just after electronics which currently has an annual business of $3 billion.
With fast developments taking place the fashion products offered is assumed to grow further, no wonder Myntra.com is working on an all mobile plan; is it just the first of the many to do so? The upcoming quarter reports will be the answer.