Myntra Goes Offline With Kirana Stores; Targets 50% Sales From ‘End of Reason Sale’!
Myntra is aiming to grow by at least by 50% from the previous edition of the sale.
Ahead of their year-end flagship End of Reason Sale (EORS), Myntra, the largest online fashion retailer in India is going offline with local stores to showcase and sell their merchandise in the way similar to what FMCGs are doing by renting entire dedicated shelves.
They are aiming to grow by at least by 50% from the previous edition of the sale. The Flipkart owned firm soon will hit the profitability mark at an operational level by the end of this financial year, with an expected annual gross sales of around Rs. 8,000 crores.
The Uber & Airbnb Business Model
Myntra has already signed up with 3,600 ‘kirana’ stores for their EORS sale and in the coming months, the numbers will grow. Myntra is planning for an omnichannel play with the local stores.
The company will pay these stores, who co-brand signboards of Myntra with dedicated display shelves showcasing its merchandised products.
They will leverage the small retailers, similar to what Uber and Airbnb do. Uber is the largest cab aggregator in the world, but they own no vehicles. Similarly, Airbnb owns no hotels themselves. In the same way, Myntra wants to sell its products without owning any offline stores.
Myntra’s Collaboration With ShopX For Offline Business
The assisted e-commerce firm ShopX, which helps retailers and kirana store owners to come together and partner on an e-commerce platform, will help Myntra with their latest initiative to tie up with the local stores.
ShopX has been innovating in supply chain management and distribution, while managing other functionalities like payments, credits, store enrolment, product placement, in-store marketing and visual merchandising.
Consumers who are interested in buying any of the products displayed at these co-branded stores, can buy them directly or order through the app on shopkeepers’ phone.
Myntra will continue signing up small traders and eventually plans to scale it up to more than 15,000 outlets across the country.
They are also planning to put shop-in-shops in some of the larger apparel stores.
Expected Business From Myntra’s End Of Reason Sale 2017
They will hold the End of Reason Sale (EORS) from 22nd to 25th December. They are expecting around 60% of the overall sales from Tier II and Tier III cities, whereas the website has experienced a major growth in last one year.
You will get to experience a new Myntra this End of Reason Sale with changes to the app. You will get the new predict feature, where they will offer suggestion as to what you should buy.
Also the products that are located closer to customers will be sorted in order, so that shipping can be done faster. Myntra is expecting at least 30 million customers during the December sale, with at least 75 million shopping sessions.
The previous edition of the EORS sale back in June minted around Rs. 430 crore over three days together for Myntra and Jabong, both owned by Flipkart.
Myntra has always been about brands. From Virat Kohli’s Wrogn to Hrithik Roshan’s HRX to Salman Khan’s Being Human, these private label brands have always worked wonders for Myntra.
In the last sale, Roadster, HRX and Moda Rapido generated 25% of their overall sales during the three day event.
After a dry run over the past few years, the retail firm will finally hit profitability at the operational level. The annualized gross sales are expected to be around $1.25 billion.
Earlier this year, Myntra said that their private labels and brands business had turned profitable and they are expecting to hit an annual revenue run of $2 billion by the end of this financial year.