Shopping to get costlier! Myntra plans to lower discounts
E-commerce player Myntra is planning to gradually roll back discounts and focus on high fashion sales event to eventually shift to a full-price products model, according to a report.
March 24, 2017 / 12:48 PM IST
Myntra (Image: Company website)
E-commerce player Myntra is planning to gradually roll back discounts and focus on high fashion sales event to eventually shift to a full-price products model, according to a Livemint report.
Flipkart-backed Myntra is expecting a 40-50 percent sales growth in the next fiscal, its chief executive Ananth Narayanan told the paper in an interview. This will be added to Rs 5,000 crore sales that it is expecting for the current fiscal.
Myntra will hold a three-day sale high fashion sale in first half of April from which it is expecting revenues in range of Rs 60 crore to Rs 100 crore.
In its last End of Reason Sale (EORS) in January it had earned Rs 350 crore. The online retailer generates significantly from the EORS sale held in January and July annually.
In January, Myntra had posted better-than-expected sales in January with Rs 850 crore in sales, according to a source-based report.
Myntra’s new sale concept has been taken from the flash sales that smartphone companies implement to boost demand.
It plans to create a full-price fashion event with a sales target of Rs 100 crore, according to Narayanan. Myntra will have discounts, but in lower range of 5-10 percent.
This comes at a time when the e-commerce company and its parent company – Flipkart – are trying to scale down losses. Flipkart is also planning to raise funds of upto USD 1.5billion, which is likely to be its last before moving towards an initial public offering.
In February, Myntra reshuffled its top deck following exit of key executives in past year including its chief technology officer Shamik Sharma and head of fashion brands Abhishek Verma.