We’ll continue focus on customer delight, says Myntra’s Bansal

09 Jul,2012

E-tailing in India has seen some brisk business being conducted by a few players in the recent past. While some may brand the space as crowded, there are a few players who have created a niche and are gaining handsome dividends too. Like Myntra.com, that has been consistently doubling its revenues every 5-6 months for the past 15 months and is currently doing over 8,000 transactions daily. According to Mukesh Bansal, Founder and CEO, Myntra.com, the opportunity to offer the widest catalogue across national and international brands, 24/7 shopping, 30 day returns and Cash on Delivery are some of the features unique to online shopping and have helped grow the market.

 

In an interaction with MxMIndia, Mr Bansal talks about the growth story of Myntra in a crowded marketplace, on the USP that sets it apart from its peers and what are its plans to derive next phase of growth in India. Excerpts:

 

What according to you are the factors that are driving the growth of the e-commerce marketplace in India?

Some factors that are enabling the growth of the e-commerce in India:

 

> Internet penetration:India, currently at 120 million users, is one of the fastest growing internet markets in the world and is expected to touch 300 million by 2015. This has led to opportunities for a vast number of businesses to mushroom online. E-commerce is the largest and the fastest growing segments online.

> Success of online travel sites & ticket bookings: This has led to increased confidence among consumers to venture into online shopping.

> Convenience: Widest catalogue across the best national and international brands, 24/7 shopping, 30 day returns and Cash on Delivery are some of the features unique to online shopping and have helped grow the market.

> Investment from VCs and private players: Investors are looking at e-commerce as a long term investment portfolio as the space has shown tremendous potential to become a multi-billion dollar business.

 

How would you analyse Myntra’s growth story in India over 2011-12?

Myntra has been consistently doubling its revenues every 5-6 months for the past 15 months and is currently doing over 8,000 transactions daily. Our daily traffic has grown to over 4,00,000 visits and our network has grown to cover 1,200 towns and cities across the country. With over 350 of the best national and international brands, Myntra is, today, the largest online retailer in the fashion and lifestyle segment.

 

We are also one of the well-funded companies in the space and at the current growth rate, we are confident of achieving our target of Rs500 crore by the end of this financial year.

 

The e-tailing space is flooded with players offering the same set of user services, what is the USP that Myntra brings to the table? 

Back in 2010, Myntra took a bold decision to enter the full catalogue, current season segment to retail merchandise on MRP. Along with the largest catalogue of marquee brands, Myntra was able to target untapped markets across the country coupled with on-time delivery and flexible policies.

 

Cash on Delivery as a payment option became an instant hit among our shoppers and today constitute about 65 per cent of our overall business.

 

Could you summarize what your core TG of online shoppers looks like?

Our typical shoppers fall in the age bracket of 20-35 years (SECAB) with about 70 per cent of our shoppers being male. About 55 per cent of our shoppers are from tier 2 & 3 cities with the rest in top 10 cities.

 

What is the emphasis you lay on the distribution/delivery across India?

One of the biggest challenges for any e-commerce player is to effectively manage its supply chain and logistics. At Myntra, we are constantly upgrading our processes to provide a hassle free shopping experience while strengthening our in-house logistic network. We are currently operational in over 12 cities across the country and plan to reach as much as 70 per cent of our customers directly via our own logistic network by the end of this year.

 

What is the impetus that you are laying on the marketing/communication plans for Myntra?

Our latest TVC hit the networks in June 2012 across major national channels. We are now entering regional markets in the south with language specific ads in Tamil, Kannada and Malayalam.

 

We are also partnering with various other properties that enhance our fashion quotient.

 

Do you think e-tailing is gaining ground in India at the expense of other modes of shopping?

The overall lifestyle category in India is pegged at approximately $50 billion, growing at 16 per cent CAGR. This is one of the largest categories, not considering travel & tourism. The industry is expected to cross $100 billion in 2015 with approximately 5-8 per cent of this being online. This clearly indicates that the market is big enough for both to co-exist.

 

What are the challenges in running a successful e-tailing network in India?

The biggest challenge for any e-commerce player is to effectively manage its supply chain (inventory, logistics etc) and customer experience. Delivery team and customer support being the two main touch point for an online retailer, utmost importance needs to be given to both these aspects.

 

At Myntra, we are constantly upgrading our processes to provide a hassle free shopping experience while strengthening our in-house logistic network. We are also constantly training and motivating our CC teams to imbibe the Myntra core values and pass them on to our customers.

 

What are your plans for the next phase of growth in India?

According to recent reports, online apparel will be a $2 billion market by 2015 and we see great potential to grow in this environment. Our investments in technology, brand and supply chain is already paying dividends and we will continue to focus on delighting our customers.

 

We are also adding new features on our interface to aid our customers in their buying process and helping them make the right fashion choice with our fashion blog called Style Mynt.

 

Social media is a very important platform for us and we are making steady progress with over 6.5 lakh fans on our Facebook page while Twitter, Google and Pinterest are gaining momentum.

 

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