Myntra looks at increasing sales by 90 percent this fiscal

Online fashion e-tailer Myntra hopes to increase gross sales by 90 percent to Rs 5,000 crore, net of discounts, this financial year by bringing about an improvement in its product selection, adding new categories and re-opening its desktop website. In the process, it will cut spending on discounts, logistics and other operational costs.

Myntra is trying to lower its cash burn rates for the year ending March 2017 after keeping them constant last year. In March 2015, Myntra reported a net loss of Rs 729.2 crores. The firm also cut supply chain costs and improved its customer engagement rates. For transporting a package, it is using surface transport more than air. If through all these measures the company achieves its target of cutting spending on discounts and other operational costs, it will become one of the few online retailers that can boast of so-called positive unit economics.

Myntra, which is owned by Flipkart, has been forced to open its website because it had been losing its customers to Flipkart, Amazon India, Snapdeal among others. With the website becoming functional soon, the e-tailer hopes to make 15-20 per cent of its sales from the desktop website in the current financial year. It had gone app-only last May.

In order to differentiate itself from other e-tailers, Myntra is projecting itself as a mass premium brand. The company is curating products from popular brands rather than simply offering the widest possible range. It has also increased its selection of women’s products adding private labels such as Roadster and Ether. Also, earlier this year it launched a revamped version of its mobile app to boost customers engagement by adding features such as a fashion feed, a forum for users to interact with each other.