Myntra Expands Into Beauty And Home Decor: CEO Nandita Sinha
Online fashion retailer Myntra has increased its market share over the past 12-18 months despite rising competition from rivals like Reliance Ajio and Nykaa, according to a recent report.
In an interview with ET, Sinha highlighted that the platform’s focus on international and direct-to-consumer (D2C) brands has significantly boosted its high-value retail segment.
Sinha, who has been Myntra’s CEO for nearly two-and-a-half years and is a veteran of Flipkart, noted that the company is diversifying into peripheral sectors such as beauty and home decor.
Approximately 45% of Myntra’s sales for international brands are coming from non-metro areas, driven by the lack of physical stores catering to these markets.
Demand for D2C brands like Rare Rabbit, Snitch, and Bewakoof is also growing rapidly, with year-on-year demand increasing by 80%. Additionally, Myntra’s luxury portfolio, featuring high-end brands like Hugo Boss and Guess, has seen a 150% expansion.
“We have gained market share in a broad-based manner across all categories,” Sinha stated. “It has also been about winning new customer cohorts, whether it is Gen Z, of which we have 10 million, or deeper penetration into tier-two cities, which are growing faster than metro and tier-one cities and have become a large part of our consumption bucket.”
According to market research firm Datum Intelligence, Myntra achieved gross sales of around $3.9 billion in 2023, while Reliance’s Ajio is estimated to have ended the year with over $2 billion in gross sales. Industry executives confirmed similar numbers for these companies.
Myntra and Ajio refrained from commenting on specific sales numbers, but in the online fashion arena, Myntra maintains its leadership position while Ajio poses a challenge as a significant competitor.
Contrary to this competitive landscape, Amazon hasn”t emerged as a major contender in the online fashion segment, which is dominated by Myntra, part of the Flipkart group. Myntra”s platform boasts over 400 international brands, including prominent names like Mango, Trendyol, and Kiabi.
According to industry executives and analysts, the growth trajectory in online fashion mirrors broader retail trends, with a notable rise in demand for premium products and a softer demand for lower-priced items.
Nandita Sinha, Myntra”s CEO, highlighted the platform”s customer dynamics, noting that new customers often start with lower-priced items while repeat customers drive premium sales. Looking ahead, Myntra plans to expand into new segments like beauty and home decor, leveraging its substantial user base, which reached 40 million by the end of 2023.
Sinha emphasized the profitability aspect, mentioning efforts to reduce product returns and exchanges, which are significant cost points for online fashion platforms.
Myntra”s focus on profitability has been underscored by its positive performance on earnings before interest, taxes, depreciation, and amortization (EBITDA) basis in recent quarters, as stated during Flipkart”s earnings call in May.
As per the report, Sinha said, we are moving away from customers who are buying commodity fashion, and going towards more fashion-forward, more premium fashion-buying customers. We always want to be the platform of choice for aspiring India, which is becoming more fashionable she added.
Moreover, Myntra has streamlined its private label strategy, concentrating on top-performing brands after a restructuring last year, which saw the consolidation of its in-house brands to 20 key labels.
