What had started in 2007-2008 to sell personalised gift items, today, has become one of the most preferred shopping destinations online. The journey of e-commerce platform Myntra – a Flipkart Group Company, is now owned by Walmart Inc due to its acquisition of the parent company in 2018, seems to be one of the most captivating. Many would ask why. The answer resides in technology. While e-commerce remains at the forefront of all initiatives, Myntra is today more of a technology company, as it has added layers of proposition over the years. “Technology is a key part of its DNA. In fact, our vision is to democratise fashion with technology. Our evolution into an enterprise that leverages tech to solve the needs of consumers did not happen overnight. It is a result of our experience and careful consideration of the consumer demands. We have been using technology to enable seamless access and overall shopping experience over the years,” Raghu Krishnanda, CPTO, Myntra, told BrandWagon Online.
The Indian fashion e-commerce market, which is predicted to reach $19,605.9 million by 2024, accounts for 18.7% of the total e-commerce market in India, as per the latest finding of ECDB, a market research firm. It is expected to increase over the next years. The expected compound annual growth rate (CAGR) for the next four years (2024-2028) is predicted to be 12.6%, resulting in a projected market volume of $31,520.5 million by 2028. Within the fashion market, ECDB considers the following three sub-markets, including apparel, footwear, and bags and accessories, to further grow. “In the space of e-commerce, m-commerce and commerce which is managed online, the role of technology is indisputable. In fact, the critical success factor lies with technology, data. Add to this the ability to juice the data, approach the data, and utilise it. Companies which have invested in there areas are doing an excellent job. It is about marketing technology. It is about talking to consumers with technology as an intermediary,” Harish Bijoor, business and brand strategy specialist and founder, Harish Bijoor Consults Inc, explained.
The art of technology
As pointed out by experts, technology needs to be at the centre of the game. As a result, the platform claims to have created a variety of solutions, including MyFashionGPT and MyStylist, that solve shoppers’ fashion inspiration while enhancing their end-to-end shopping journey. Moreover, the Virtual Try-On feature has helped drive product consideration by 1.5X as opposed to products which are not listed on the feature, proving the crucial role tech plays in fashion, stated the platform. “Our ability to continuously improve the shopping journey is the ace up our sleeves and is one of the pivotal reasons why we have been able to create a brand while establishing a strong relationship with consumers who look at Myntra not just for fashion transactions but inspiration and assistance,” Krishnanda added.
One of the key issues faced by the fashion segment is the high rate of return post trial besides the fact that even in skin care, it sort of is a challenge to sell new products to consumers, as the entire game of skin care and make-up resides on trial. It is here that Myntra claims to have created an interesting shopping experience for beauty, personal care, and grooming (BPC) verticals. Through a blend of AI-led tools and social commerce, the platform transformed itself into a comprehensive destination for fashion, beauty, and grooming needs. For instance, the AI Skin Analyzer provides personalised skincare recommendations, resulting in over 70% completion rates and improved conversion. Moreover, the BPC-specific cross-sell widgets help in driving demand by mirroring in-store nudges. Dedicated entry points and personalised navigation for beauty and personal care have enhanced user engagement and convenience. Also, assisted selling tools on the platform, powered by AI, and collaboration with popular influencers through the Myntra Minis have upped brand visibility and consumer engagement. “These strategic implementations have not only enhanced the shopping experience but also strengthened its position as a leader in tech-driven innovation within the BPC industry, where we see ourselves growing notably ahead of the market. In fact, 75% of our customers have already experienced Myntra Beauty,” Krishnanda noted.
To be sure, segmentation has been a strategic move for Myntra, contributing significantly to the growth of its business. This segmentation strategy claims to have allowed it to cater to the diverse preferences of its customer base, thereby expanding market reach and enhancing overall demand. According to Krishnanda, by offering products across varied price points ensures accessibility to a wider audience, capturing consumers across various income brackets.
Building the customer experience – CX
In addition to acquiring new customers, enroute to profitability is important to create a set of loyal customers who are also repeat customers. This, over a period of time, helps reduce the cost of customer acquisition, which’s a critical metric, and helps in building a healthy LTV (lifetime value). “We have recognised that fostering customer loyalty is built on various parameters including crafting a holistic shopping experience that prioritises user experience, convenience, flexibility, and rewards. One key aspect that contributes to customer loyalty is our differentiated service on fast delivery and hassle-free exchanges. M-Express, our 2-day delivery proposition, is at the forefront of this ensuring timely delivery of orders. We have extended this service to non-metros also where M-Express tagged products can be delivered within three days,” Santosh Kevlani, vice president – CC/CX, Myntra, said.
Moreover, it claimed that Style Exchange policy gives customers the convenience of allowing shoppers to place an exchange order not just for a different size but a completely different product from the Myntra catalogue. As part of this, customers don’t have to wait for a refund or credit. Additionally, its Supercoins system rewards loyal customers, known as Myntra Insiders, through Supercoin accumulation for their long-standing patronage. “Our focus on delivering a seamless, personalised, and rewarding experience has been instrumental in creating a loyal customer base as well as building brand salience,” Kevlani noted.
Industry experts opine that in today’s digital landscape, CX doesn’t just kick in after a purchase, instead it begins shaping customer perceptions even before they have landed on a platform. Think about it – from the moment a potential customer encounters the brand through advertisements, testimonials, or other forms of organic brand engagement, their opinion starts to form. But here’s the catch: this initial impression isn’t just about making a sale, it’s also about planting the seeds of loyalty. “Once customers decide to engage with you, the experience they encounter there becomes even more crucial. Everything from the user interface to how quickly their issues are resolved plays a role in shaping their perception of your brand. And here’s the thing: positive experiences here not only secure immediate sales but also pave the way for a high lifetime customer value. Personalisation further enhances this by tailoring the platform experience to the individual preferences and needs of each customer, making them feel truly valued and understood. So, CX is the backbone of sustainable business growth,” Arun Pattabhiraman, chief marketing officer, Sprinklr, opined.
Meanwhile, Myntra claims to rely on AI to give users a personalised and intuitive browsing experience. “The homepage of our app is meticulously designed to cater to each user’s preferences, ensuring a seamless journey from the moment they enter. At the outset, users are presented with options that cater to their specific interests, whether it’s exploring the diverse selection, delving into FWD for Gen-Z fashion, or indulging in luxury with Myntra Luxe,” Krishnanda said.
Furthermore, this personalised experience extends to the user’s level of engagement on the app, the company stated. Whether someone is a value-conscious shopper or seeking premium brands, the homepage adjusts to showcase relevant brands, styles, offers, and trend widgets to help customers make informed purchase decisions. Moreover, the user journey is also tailored to display styles specific to regions and the cherished festivals in the relevant geographies. “For example, users in Punjab will encounter Lohri-themed selections, while those in southern regions might see offerings relevant to Pongal. This tailoring extends to our search functionality as well, where personalisation operates at a cohort level, considering factors such as past purchases, brands they have most interacted with, among others,”Krishnanda explained.
For Myntra, these efforts have yielded remarkable results, notably driving cross-selling opportunities and fostering customer loyalty. During the 2023 festive season, it claims that the Monthly Active Users (MAU) reached 60 million. As per Krishnanda, features such as Vernacular Search empowers users to browse and shop in their preferred regional languages. “Additionally, Myntra Minis, our innovative short-form video content platform, enhances user engagement and fosters video-led discovery, further enriching the shopping experience. Our photo feature ‘Spot it, get it’ enables users to click a photo of any trend they spot on anyone in person or on social media and upload it on the app to be able to track that trend. We leverage customer data regarding their interactions on our platform to recommend and show relevant products to personalise the shopping experience for her,” he noted.
Loyalty to profitability
Early this year, the Flipkart-owned fashion platform issued a statement stating that it has been operationally profitable since October last year. At the time, Myntra said that its marketplace entity has been EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive since the last quarter of calendar year 2023. In the meantime, Myntra Designs Private Ltd posted a rise of 25% in revenue from operations to Rs 4375.3 crore in FY23 from Rs 3501.2 crore in FY22, as per regulatory filings accessed by business intelligence platform, Tofler. The company’s net loss widend by 31% to Rs 782.4 crore in FY23 from Rs 597.6 crore in FY22. While the company refused to comment on its earning, Abhishek Gupta, CFO, Myntra, said that its strong market position, owing to its growing customer base, domestic and international brand associations, world-class tech-led innovations and a strong foothold among the aspiration-driven fashion-forward customers, has enabled the marketplace entity to turn EBITDA positive since the last quarter of CY2023.
The platform attributes categories such as beauty accounting for a significant amount of the growth, with plans to add new categories. “We have had a strong play in beauty over the last three years and have created a robust assortment of brands, industry-first innovations and compelling constructs to effectively cater to the Indian beauty buyer. As our beauty business grows from strength to strength, we are also deep diving into categories such as home, decor, and luggage and travel accessories, that complement fashion as a key category and is a move aimed at diversifying our offerings and catering to a wider range of consumer needs,”Sharon Pais, CBO, Myntra, said.
The BPC (Beauty and Personal Care) specific campaign featuring actor Anushka Sharma, focused on showcasing primary differentiators, innovative assisted selling tools including the AI Skin Analyzer and Virtual Try-Ons, available across a range of brands to elevate the shopping experience. “By highlighting the importance of personalised skincare solutions and integrating technology-driven solutions to ‘find your own beauty’, we have amplified visibility for our Myntra Beauty,” she noted.
For Myntra, the story doesn’t end here. Infact, the increase in spending capacity bundled with the rise in first-time online shoppers, especially in tier-2 and tier-3 cities, has now provided the platform to further expand and grow its business. “This dynamic landscape gives us the opportunity to build for the evolving customer needs, both from product and service standpoint, ranging from making selections from leading international brands available as well as getting the unique offerings of the homegrown D2C brands to providing a seamless shopping experience. We are at the forefront of leveraging cutting-edge technology to innovate the end-to-end shopping experience, be it through a user-friendly UI/UX or post-sales services such as speed and easy returns and exchanges,” she explained. With this, Myntra claims to be focusing on bolstering associated categories such as beauty, besides premium segments within categories such as home, sneakers, luggage, and travel accessories.