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Its innovative use of AI and social commerce has made it the Indian e-commerce player that everyone is watching. For CEO Nandita Sinha, investment in technology has paid off — and now the Myntra marketplace has turned EBITDA-positive.
The marketplace became EBITDA (earnings before interest, taxes, depreciation and amortisation) positive last year and has remained so in the first quarter of this financial year. Although exact figures have not been shared, Indian media reports that operating revenue for the year ending 31 March grew by 25 per cent to Rs 4,375 crore (around $525 million).
Losses in the last financial year were still up by a reported 31 per cent, but the EBITDA news is significant and a recognition of the strategic direction of Sinha, who took the helm in January 2022 as the first female to lead the company since its launch.
Formerly with Hindustan Unilever Limited (HUL), she joined e-commerce platform Flipkart in 2013. Flipkart, which is like an Indian version of Amazon, acquired Myntra in 2014 before being acquired by Walmart itself in 2018. A trained engineer, Sinha emphasises technology and data in her approach to e-commerce.
The company’s focus on premium puts it in a sweet spot. Kushal Bhatnagar, associate partner of Redseer Strategy Consultants, says that, “Among consumers we spoke to, Myntra emerged as the highest rated fashion e-commerce platform on parameters such as ‘access to premium/international brands’ and ‘availability of trendy products’. This had an even higher prominence among women shoppers.”
Myntra’s product formula mixes international premium fashion labels, homegrown brands and in-house labels alongside beauty products, which were added to the portfolio in 2021. Sinha plays down her personal impact: “I inherited a very good platform that was loved by so many consumers and was at the forefront of innovation, defining elevated fashion for the country,” she says, reflecting on the history of the company, which was founded in 2007. “I feel lucky that I joined an organisation that has so much heritage. While it was a young platform back then, the legacy of being the innovator of fashion, democratising fashion and making aspiring India fashionable is what we have held true to over the last so many years.”
Myntra has acquired 75 million users, and some six million consumers visit the site as often as 30 times a month. The data gathered provides deep insights into the spending habits of the Indian consumer.
Think premium, not luxury
There is plenty of room for growth. Redseer’s Bhatnagar says the fashion retail market in India was worth $90-95 billion in 2023, and it’s projected to grow to $200 billion by 2030. “E-commerce penetration in the fashion sector was around 15 per cent in 2023 and is expected to increase to 25 per cent by 2030, potentially adding more than $35 billion in gross merchandise value (GMV).”
Myntra launched as a true disruptor. Though now also in the local e-commerce mix is Reliance’s Jio Platforms and Tata Cliq.
Sinha doesn’t see them as direct competitors, however, because their focus is on luxury. “We are a premium marketplace rather than a luxury one. The premium market is where the growth is currently happening in India,” she says.
Premium price points are leading the way, including brands such as Mango, Nautica and French Connection, all of which Myntra’s business-to-business operation manages offline in India. Myntra recently launched a Mango workwear edit with fashion influencer Juhi Godambe. “To me, this activation made the brand seem more India-focused by creating an edit made for an Indian woman with a very approachable campaign,” says Sinha.
Mango CEO Toni Ruiz notes that, “India is one of the most important markets for Mango globally. In the framework of our new Strategic Plan [for] 2024 to 2026, we have considered the country one of our top priorities to expand because we see a huge opportunity for our business to grow in the future.” Mango had 110 points of sale in India at the beginning of 2024, with up to 15 more expected to open by the end of the year.
Yet online remains important for international brands, not least because of limited real estate opportunities, especially in Tier 2 and Tier 3 cities (which account for 45 per cent of Myntra’s demand for international brands). Another key focus is ethnic (or traditional) wear, which enjoys a sales spike during festival and wedding seasons. While homegrown and private labels service this market, international labels sense opportunity as fusion styles gain prominence.
The potential of beauty
Beauty is the fastest-growing category for Myntra. Huda Beauty onboarded last year, and the company houses brands from the likes of L’Oréal alongside homegrown names, too. Despite competition from market leader Nykaa and Reliance’s Tira, Sinha believes the trust built with fashion consumers via Myntra is translating into beauty.
Sinha shares that 75 per cent of Myntra’s female shoppers tried beauty products on the platform in 2023, and over a third of all Myntra shoppers have explored beauty on the app. While she prefers to play down the significance of her gender as a CEO, Sinha does emphasise the need for diversity and inclusivity, as well as their impact on productivity. She adds: “We pride ourselves on being a near 50-50 platform, a rarity in the Indian e-commerce landscape. Achieving balance, not only in gender diversity but also in product offerings, is essential for us.”
Social commerce and Gen Z
Myntra first tested the waters with social commerce in November 2021, as part of a learning process. “Our first foray into social commerce involved live-commerce events, something that was being done in other countries,” explains Sinha. “But we soon realised that Indian consumers, as opposed to other parts of the world, weren’t keen on watching lengthy videos about styling and shopping. Instead, they preferred seamlessly integrating content with their shopping experience.”
This led to the launch of Myntra Studio, which works closely with fashion influencers throughout India. Sinha describes its output as, “static image content strategically placed throughout our app. Whether users are searching for products or exploring categories, they encounter static image content that inspires their shopping journey.”
Another innovation appealing to younger customers is Myntra Minis, which is similar to Instagram Reels, with nearly 2,500 videos released monthly on the app and over 800 video hours viewed by millions of users. Bhatnagar says: “Their digital initiatives, especially Myntra FWD, a Gen Z-targeted fashion-discovery portal available on the app, has received a lot of appreciation. This has been particularly effective in gaining traction with younger clients.”
Sinha sees her company as driving digital transformation in the fashion business in India. AI is seamlessly integrated into the Myntra app. “Game-changing features [such as] MyFashionGPT, MyStylist, Maya and Assisted Selling Tools for beauty shoppers, bridge the gap between inspiration and assistance,” she adds.
MyFashionGPT leverages ChatGPT to provide personalised fashion recommendations. MyStylist curates complementary products based on users’ purchase history, driving engagement and repeat purchases. Maya, Myntra’s virtual influencer, acts as a real-time fashion guide, offering personalised styling advice. There’s also a much-consulted size-and-fit recommendation feature, which, says Sinha, “accounts for nearly 45 per cent of our revenue, ensuring a seamless post-purchase experience by recommending the right size based on users’ preferences and past purchases”.
Under Sinha’s leadership, Myntra is setting new benchmarks for e-commerce in India by blending technological innovation with an informed understanding of the evolving fashion landscape.
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