Myntra to earn profit in FY-2017

Clocks $800 m GMV in 2016

Myntra to earn profit in FY-2017

Myntra on Thursday announced that it is well on its way to achieve its target of $1 billion gross merchandise value (GMV) in the forthcoming fiscal FY2016-17. Moreover, the company is set to fulfill the eCommerce industry’s most distinguished objective — profitability.

Having clocked in $800 million in annualised GMV, January 2016, has been the biggest month ever for Myntra, Myntra CEO Anantha Narayanan said.

On Myntra’s business performance for the previous calendar year, Narayanan said, “Three key startegies — selection of brands, platform strategy and service — have helped the company achieve a 70 per cent year-on-year growth,” he said, adding, “Having gained momentum with high growth rates and GMV, Myntra will focus on positive gross profit this year.” 

Reducing discounts     
Differentiation in terms of improved selection, international brands, exclusive brands and value-added services, have allowed the company reduce its discounts. “We have been able to reduce discounts by 6 per cent, and see potential to reduce it by another 3-4 per cent,” he said, adding, “International brands, which account for about 5 per cent of the revenues now, is set to reach 15 per cent, next year.”

The platform currently offers 30 international brands, including Harley Davidson, Forever 21, Scotch & Soda etc. However, the company maintains that the focus for FY2016, is to increase contribution from in-house brands, led by Roadster, from the current 20 per cent to about 25 per cent.

Another area, where the company has been able to improve efficiency is supply chain costs. “Supply chain costs have reduced by 5 per cent, and can be further reduced by 1-2 per cent,” he said.

 
Goal shopping
*Myntra en route to achieving $1 b GMV target
*Looks at reaching the objective of profitability
*Aims to do better in the area of supply chain costs

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