According to the CEO of Myntra, Nandita Sinha, the Flipkart-owned ecommerce major receives nearly 40% of orders of its international brands from Tier II cities and beyond.
“I think Tier II today is one of the fastest-growing geographies. One of the interesting parts about Tier II and Tier III cities is that 40% of our international brands business comes from these cities. So, customers from Tier II and III cities are buying across brands,” Sinha said, speaking at a session during Inc42’s fourth edition of The D2C Summit 2023.
The ecommerce major has been busy launching several products and services over the past few months, including FWD and Myntra Minis, to attract GenZ customers and improve user experience on its platform.
Myntra aims to attract 10 Mn GenZ users and expand its customer base over the next two years. As of 2022, Myntra has a customer base of 8.6 Mn GenZ users. Further, the platform plans to increase the number of styles available on FWD to over 100K by 2023-end.
“So, I think the more we personalise our experience for each customer, it’s increasingly easy for us to cater to different customer types. Tier II and III cities have been a very important part of our strategy over the last few years and will continue to do so as we go forward,” Sahni said.
Talking about the larger fashion opportunity in India for D2C brands, the Myntra CEO noted that only around 30-35% of the $100 Bn industry is branded, with the rest being unbranded.
“New brands will emerge in this country. They will, of course, be international brands, which will come. But a lot of the brands in the country will be homegrown,” Sinha added. She said that over the last few years, the Indian consumer has become far more tech-savvy, due to which the adoption of fashion brands has seen a hockey stick growth.
Myntra also has a considerable contingent of in-house private labels, including names such as Roadster, HRX, Mast & Harbour and more. Over the past few years, Myntra has launched more than 20 so-called ‘master brands’.
While the platform is yet to publish its financials for the financial year 2023 (FY23), it posted a 40.5% YoY increase in its loss to INR 597 Cr in FY22. The bottom line took a hit despite a 45% year-on-year (YoY) increase in operating revenue to INR 3,501.2 Cr in FY22.
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