Myntra Business Model | How Myntra Makes Money
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Myntra has gone a long way from its humble beginnings as an eCommerce platform for personalized gift items to become the premier online fashion retailer in India. Throughout its history, the company has never compromised on providing clients with the highest quality, thanks to its brilliant business methods. Myntra is one of the most prominent names in the fast-growing eCommerce industry, which has its share of innovators and industry standards-setters. Imagine a society where clothing is more than simply a means of transportation; it is a means of self-expression via style and self-assurance. Myntra is more than an online store; it's a place where style can be expressed. Thanks to its vast selection of brands, styles, and trends, Myntra has revolutionized the way we view and enjoy fashion.
Through this article, we will touch on the business model of Myntra and will find out how it is earning money and churning its yearly profit through its revenue model.
About Myntra
Myntra Business Model
How Myntra Makes Money
USP of Myntra
Myntra Swot Analysis
About Myntra
In 2007, Vineet Saxena, Mukesh Bansal, and Ashutosh Lawania established Myntra. The three of them saw a niche in the market for customized presents and set out to fill it. After seeing the potential in the fashion and lifestyle area, Myntra swiftly expanded from its initial platform for personalized gift products. The organization shifted its emphasis in 2011 to establish itself as a premier online destination for fashion products. Myntra, the Bangalore-based company is worth over a million dollars because of its extensive presence across India.
Myntra Business Model
As an online marketplace, Myntra facilitates the sale of fashion items by third-party vendors. Revenue for the firm comes mostly from the transaction fees paid by suppliers since it is a marketplace service provider. Logistics, advertising, and consulting are some of its other revenue generators. Products sold by Myntra under its brand are also available for purchase.
A customer-centric strategy, collaborations with fashion brands and designers, and investments in state-of-the-art eCommerce technology are all parts of Myntra's business model. These methods have kept customers coming back for more. The product variety of Myntra was enhanced by collaborations with over 6,000 lifestyle and fashion companies, including Levi's, H&M, Biba, Nike, Mango, Hilfiger, and many more.
Customers looking for both well-known brands and new trends were drawn to this variety. In 2014, Flipkart made a strategic move by acquiring Myntra for over $300 million. This merger brought together two giants of the industry. Myntra was able to tap into a wealth of new resources and experience, thanks to this partnership.
The Myntra company chose to discontinue its website in 2015 and instead run it through its mobile app. But a 10% hit to the economic model was what brought the website back from the dead. The company plans to expand into more markets. One of the leading fashion eCommerce sites in India, Myntra, offers a variety of fulfillment options. Myntra JIT and M-Direct stand out among the others.
Vidhi Punamiya
How Myntra Makes Money
According to a report, Myntra generated approximately US$3.9 billion in revenue during the calendar year 2023. The cumulative sales of its primary competitor, Reliance's Ajio, were estimated to exceed US$2 billion.
Income for Myntra comes from a variety of sources. A greater sum of money is added to the company's vault through various means, including logistics, advertisements, partnerships, etc.
Here we will discuss some of the company’s major revenue streams that help the firm generate profit.
Logistics: Myntra has established partnerships with numerous organizations to ensure the efficient operation of its logistical chain. Additionally, it imposes a delivery fee on every order. The majority of delivery charges are incurred by the consumer, and Myntra then distributes the remaining balance to the logistical company after deducting its commission. The logistical services it offered brought in INR 19,915 million in 2023.
Marketplace Services: As previously mentioned, Myntra is one of the largest fashion marketplaces in the country. The company offers a vast selection of fashion products to its consumers through both its website and app. This fashion site is the most frequently visited and charges commissions from the seller and the customer. The commissions are dependent upon the ticket size of the order and the specific product. In 2023, Myntra generated a gross revenue of INR 17,812 million through marketplace services.
Advertisement: Myntra has become a prominent and preferable location for branding and promotion due to its increasing popularity, which has expanded to the next horizon. Myntra charges advertisement fees to brands to showcase their products on the company's website and app. In 2023, Myntra generated a total revenue of INR 5,353 million through this approach.
USP of Myntra
Strategic acquisitions and technology advancements have shaped Myntra's growth trajectory to become a fashion destination. Enhancing the user experience, Myntra has also ventured into AI customization. Despite Flipkart's 2014 $250 million acquisition, Myntra continues to function autonomously.
Young, tech-savvy people looking for colorful, on-trend clothing at affordable prices make up the bulk of its target demographic, which ranges in age from 18 to 34. From a psychological perspective, their target demographic places a premium on current trends and the ease of internet shopping.
Meghashree Das
Myntra Swot Analysis
Myntra Strengths
- The platform offers a diverse product inventory with more than 5,000 brands.
- The company's efficient supply network reaches over 90,000 locations nationwide.
- Reliable technology and user interfaces enhance the customer experience.
- Features include Visual search and Virtual trial rooms powered by augmented reality.
Myntra Weakness
- Rival brands such as Jabong, Amazon, Ajio, and Meesho cut into its profits and market share.
Myntra Opportunities
- The company stands to gain financially from an increase in private label sales.
- The bridal market in India is ripe for exploration.
- Myntra should leverage the parent company Flipkart's network to increase exposure and sales.
Myntra Threats
- Myntra may face challenges in expanding its consumer base in the face of Amazon's formidable reputation and massive customer base.
Conclusion
Due to the extreme nature of Myntra's business strategy, the company has been able to influence the fashion trend through the use of a variety of marketing methods. Myntra's business model has seen amazing development, which has resulted in the establishment of a prominent and actively developing eCommerce sector.
FAQs
What is Myntra?
Myntra is one of the largest fashion eCommerce stores in India that deals with a wide range of fashion and lifestyle products for men, women, and kids.
What are the revenue streams through which Myntra earns money?
The main revenue streams through which Myntra earns money are logistics, advertisements, and marketplace services.
What are the strengths of Myntra?
Myntra offers a diverse product inventory with more than 5,000 brands to choose from. The company's efficient supply network enables it to reach more than 90,000 locations nationwide. Reliable tech and user interfaces, such as visual search and virtual trial rooms powered by augmented reality. Features such as visual search and virtual trial rooms powered by digital reality provide a solid user experience.
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