Update On :13 May 2015
Myntra is morphing into a mobile-app based retailer from May 15 in what may be the first such move by an e-commerce player anywhere in the world. With 90% of its traffic and 70% of sales coming from the mobile platform, the Bengaluru-based online retailer said it will be able to service its consumers better by becoming app-only. TOI was the first to report on February 7 about Myntra shutting its website to focus only on its mobile app.
Myntra currently has over 9 million users of its app with as many as 4 million customers having made purchases through it. "This is part of a larger journey of providing a differentiated experience and we will be bringing several revolutionary changes over the next 6-9 months," said Mukesh Bansal, founder and CEO of Myntra and commerce head at Flipkart.
E-commerce major Flipkart had acquired Myntra last year for $330 million. Myntra and Flipkart together command a market share of over 50% in the online fashion space while Myntra plans to hit the $1 billion mark in revenue by the year 2016, the e-tailers claimed.
Flipkart's founder and CEO Sachin Bansal said for now the e-commerce major was not ready to become app-only as there are many category experiences in a multi-product portal. Bansal, however, said that Flipkart is also moving towards the mobile-only model without disclosing a timeline for the change. Flipkart has around 75-80% of its customers using the mobile app for purchases.
"The mobile web experience was bad and mobile browsers are less powerful. People expect the apps to work as an SMS app or as a local native app. We are overwhelmed by the speed of app adoption," he said. The company is nervous but cautiously optimistic too, Bansal said. While emphasizing that this was the right thing to do, he said that this is a big moment in the history of internet. Consumers tend to look at more products on a mobile app as well as repeat rates are higher on apps compared to websites.
According to the company, the next 200 million Indian consumers would not have used desktops at all and it is not willing to reconsider this decision. Myntra said that the company is hiring lot of people to focus on changing the customer engagement experience with improved personalization using analytics.
News Source From : http://timesofindia.indiatimes.com/
Image Courtesy : timesofindia.indiatimes.com