Myntra, the online fashion marketplace for most people today is a company doing extremely well. It has its own private labels coupled with a lot of exclusive brands. It has done everything right until now. The huge sale that took place a couple of weeks ago was well received by the consumers. Jabong is still in the huge sale phase as the deals are still running around its platform. Myntra and Jabong are running on the same thing even if they appear to be two different companies.
The two companies have completely integrated on all levels of business and systems. Their operations in the department of technology, finance, revenue, creative teams, marketing, and category are the same. The companies have been working hand-in-hand in all ways possible. This has allowed them to tackle the competition out there. In 2018, both the companies did not plan huge things but were busy developing their own brands and collecting exclusive rights.
However, everything might come to a stand-still for Jabong and Myntra after the newest e-commerce policy. The new e-commerce policy does not allow the websites to sell the products in which the company has stakes or owns. This has totally pushed back the plans of the Flipkart-owned fashion companies. All the work of 2018 has gone down the drain as the companies will have to look for a new plan in order to get back on track for 2019.
That said, Myntra has suffered a huge drop in revenue in the Financial Year 2018. The revenue of the company has slid down by almost 80%. As of March 2018, the company’s revenue stood at $60.6 million which is about INR 427 crore, according to MCA filings. Such a drop in the revenue was because of the heavy losses it incurred during the last fiscal year.
Myntra’s losses rose to $21.4 million which is around INR 151 crore. The total expenses of Myntra also took a climb to $131.5 million which is about INR 926 crore. Myntra’s finest seller Vector E-commerce has plummeted by 90%. Its revenue is what took the fall. Its revenue was $173 million about INR 1216 crore in 2017 which dove down to $11.5 million in 2018. This all boils down to the high profile exits at Flipkart.
Sachin Bansal and Binny Bansal were the ones to take in Myntra and Jabong and after their exits, everything has gone down. Walmart is trying to bring Flipkart back on track. It has incurred losses in the sum of $293 million which is increased by 700% from 2017. This shows how poorly Flipkart has managed the exits of Sachin and Binny Bansal.
– Unmesh Phule