Nandita Sinha, the CEO of Myntra, a prominent e-commerce platform under the Flipkart umbrella, has revealed that a significant portion of their international brand orders, approximately 40%, originate from Tier II cities and beyond in India. This article delves into Sinha’s insights, Myntra’s strategies, and its ambitions for attracting GenZ users and expanding its customer base.
Tier II Cities Driving Growth
Nandita Sinha highlighted the remarkable growth potential in Tier II cities, describing them as one of the fastest-growing geographies. She emphasized that 40% of Myntra’s international brand business is generated from these cities, indicating a substantial appetite for international fashion brands among customers in smaller urban centers.
Expanding Services and Personalization
Myntra has been actively introducing new products and services to enhance the user experience and appeal to GenZ consumers. Initiatives like FWD and Myntra Minis aim to cater to the evolving preferences of younger shoppers. The platform’s goal is to attract 10 million GenZ users and broaden its customer base, building on its existing customer base of 8.6 million GenZ users from 2022. Additionally, Myntra plans to expand the styles available on FWD to over 100,000 by the end of 2023.
The Potential of D2C Fashion Brands in India
Nandita Sinha discussed the broader fashion opportunity in India for Direct-to-Consumer (D2C) brands. She pointed out that only approximately 30-35% of the $100 billion fashion industry in India is branded, with the rest consisting of unbranded products. Sinha anticipates the emergence of new brands in the Indian market, including international and homegrown labels. The increasing tech-savviness of Indian consumers has contributed to the rapid adoption of fashion brands.
Myntra’s In-House Private Labels
Myntra boasts a significant portfolio of in-house private labels, including popular names like Roadster, HRX, and Mast & Harbour. Over the years, Myntra has introduced more than 20 “master brands” to cater to various customer preferences and style choices.
Financial Snapshot
While Myntra has not yet disclosed its financial results for the fiscal year 2023 (FY23), the platform reported a 40.5% year-on-year increase in its loss, totaling INR 597 crores in FY22. This occurred despite a robust 45% year-on-year rise in operating revenue, reaching INR 3,501.2 crores in FY22.
In conclusion, Nandita Sinha’s insights shed light on Myntra’s focus on Tier II cities, GenZ users, and the evolving landscape of fashion brands in India. Despite the increase in operating revenue, the platform continues to grapple with profitability as it seeks to capitalize on the vast potential of the Indian fashion market.
