Myntra, India’s Biggest Fashion E-commerce Platform. But do you know how Myntra become India’s largest fashion E-commerce company? Every day, Myntra delivers over 1 lakh orders. But, given that clothing and shoes are available on Flipkart and Amazon, what does Myntra do to maintain its market leadership? And, perhaps most importantly, what are the business lessons we can learn and use in our own firm?
Table of Contents
Story of Myntra
The tale begins in 2010, when Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena decide to launch an online company. Mukesh Bansal saw Flipkart’s expansion. And from this, he deduced that the future is of e-commerce. But did you realise that what Myntra is now was not always like this? You’ll be surprised to learn that Myntra began with personalised merchandise.
The issue was that majority of companies only ordered once or twice a year. So Myntra used to earn a lot of money during festivals, but they also wrecked flies. Because there was no market demand. Mukesh Bansal had only one vision: to develop something that will have an influence on everyone’s lives. However, personal merchandising was a specialized industry. They had no effect on anyone’s life in this way. And it was after this point when Myntra began, as we all know. Myntra has opted to join the fashion e-commerce market.
However, there was a major issue in the market. That was scepticism about e-commerce. Simply put, internet shopping anxiety. Online purchasing was not very popular in the 2010s. People used to be afraid about shopping online. But the twist comes when these items are linked to the fashion business. Endorphins are intimately related to fashion. Clothes and shoes are items that bring you happiness when you try them on.
You also get the impression that decent people compliment you. Endorphins are released by your brain whenever you are joyful. When Endorphins are released, your self-esteem increases. However, this does not happen with every item on a regular basis. For example, if you use an iPhone, do you feel good about yourself every time you check your phone? How many people have complimented you on your iPhone? Perhaps just one person did. This happens with garments.
People praise you on your attire. That is why individuals take their time while selecting garments worth 500 or 5000 rupees. Nobody wants to meddle with their Endorphins. As a result, consumers were hesitant to shop online. Even if you provide discounts, free shipping, or CashKaro – which pays you money when you purchase on Myntra. However, individuals are still reluctant to buy clothing online.
So, in order to address this issue, Myntra adopted a successful business approach. Easy Returns was the plan. It may appear easy, but comprehend it thoroughly. People did not purchase these items since they were accustomed to purchasing based on touch and feel. Even if they purchased something online, they were always concerned. What shall I do if the item is not satisfactory? To alleviate this concern, Myntra implemented a simple return policy.
You purchase them and return them if you don’t like them. And as a result of this minor modification, Myntra became an emblem of online shopping. Myntra has around 350 Indian and foreign brands in 2012. And, till 2014, Myntra sold 1.5 lakh goods from 1000+ companies. The point is, anybody can have a simple return policy, and other e-commerce firms do as well, so why was Myntra so successful?
When the worth of something outweighs its price, you buy it. When it comes to fashion, however, the rules shift. So only two sorts of individuals buy clothes: the first for their looks, and the second for their quality.
This sort of person simply buys clothes for their appearance. They don’t care if the fabric is of high quality or not. However, the attire should be visually appealing.
Another consideration is QUALITY. This sort of person constantly considers quality while purchasing clothing.
They constantly inspect the fabric of the material to see if it is soft, sturdy, and how long it will endure.
80% of women buy clothing for their appearance. 80% of men buy garments for their quality.
We keep items that help us advance in our careers. And these things shift from time to time. When you’re young, you want a gear cycle, then an iPhone, and finally a luxury automobile; all of these items are status symbols. To demonstrate our position a bit higher up. However, clothing are the most important status symbol for women.
These three values were combined by Myntra.
First – variety, There is a lot of diversity on Myntra. You will receive the fabric you choose. Second – EASY RETURNS: If you got items from Myntra and didn’t like them or they weren’t in your size, you may easily return them. Thrid – PRICE, You will primarily find cheap clothing on Myntra.
Why did Flipkart acquire Myntra?
Why weren’t they merged with once they were acquired? Flipkart purchased Myntra in 2014 but did not integrate the two companies. Now the issue is, if they don’t want to combine, why did they acquire? So there are two sorts of business models in e-commerce. The first model is the market place model, which implies that there is a market place where various vendors and purchasers can meet. Like Flipkart and Amazon, this site links buyers and vendors.
Goods are transferred from vendors to purchasers in the Market Place Model. However, this is not the case with the second model. The second model is the INVENTORY MODEL. In the inventory model, vendors maintain their goods with the firm where the majority of their consumers come. They are checked, quality checks are performed, and finally they are sent to purchasers.
Market Place Model is suitable for firms that cater to a wide range of customers. This collection is huge, yet there is no standardisation. In other words, you may buy anything from here, but the quality of these things is difficult to anticipate. Inventory Models are used by firms whose target audiences are not varied. People only come here to make certain purchases. And when it comes to fashion, you and I both prioritise quality of choices.
Flipkart uses the Market Place Model, but Myntra has always used the Inventory Model. People had difficulties while purchasing for apparel and fashion on Flipkart. And Flipkart has known this from the beginning since it would always happen under the Market Place Model.
Myntra for Fashion & Clothing
Myntra’s buying experience was far superior to that of Flipkart. Today is no exception. The majority of the people surveyed had fewer challenges with Myntra than with Flipkart. Flipkart purchased Myntra because it did not want to miss out on the fashion and apparel industry in E-Commerce. But there was another reason for the refusal to unite.
Thus it wasn’t Complementary Strength that was the explanation, but rather Individual Identity. So, if a person wants to buy anything little online, he will go to Amazon or Flipkart. However, when it comes to buying clothing online, they choose Myntra. Because they are aware that they would encounter less quality difficulties on Myntra. Flipkart’s brand identity is that of a mall, whereas Myntra’s identity is that of a private tailor. Where you may find garments in your size, style, and colour.
Flipkart had the resources and the logistical network, but Myntra had an excellent inventory management system and a specific following. This acquisition benefited both parties. However, if Flipkart merges Myntra with it, individuals who are familiar with Myntra’s brand identification would be confused. People would be suspicious of Myntra. Because in their imaginations, they would have a blend of Myntra’s quality control and Flipkart’s market place.
Similar to what Kingfisher did with Air Deccan. Acquired the firm for 550 crores and subsequently re-branded Air Deccan as Kingfisher Red. People get confused between Kingfisher and Kingfisher Red. As a result, Flipkart and Myntra are now two separate businesses. And, most importantly,
what are the business lessons that we can learn and apply in our own firm?
First and foremost, ADAPTABLITY IS THE KEY TO SURVIVAL. Changes occur in any business from time to time. Time passes, technology advances, and consumer behaviour evolves. As a result, it is critical to evolve with time. Myntra began with a B2B business, but with time, they transitioned to a B2C model.
Second, FOCUS IS A GATEWAY, and diversification is beneficial. But don’t expect to be the market leader in every industry. This is nearly impossible. However, if you focus solely on business, you have a good possibility of being the market leader in that area at some point.
And then there was Myntra. Myntra was entirely focused on fashion and clothes and made no attempt to diversify. That is why they are the market leader in fashion e-commerce in India.
And Myntra did this. Myntra was only focused on fashion and clothes and made no attempt to diversify. That is why they are the market leader in fashion e commerce in India.
Another takeaway from this case study is to put business first. “Subordination of Organisational Interests to Personal Interest” is one of Henri Fayol’s major principles. Simply put, the company’s interests should take precedence over your personal interests. Flipkart could simply incorporate Myntra under it, and they would feel pride as well. Then Myntra would have failed today. So always choose business before pride.