Flipkart to follow Mytra in becoming app-only format from September

After Myntra, its parent company Flipkart is said to be contemplating becoming app only by this September. The company's chief product officer Punit Soni is said to have informed about the company’s plans to the employees at a town hall meeting recently. Witnessing a rise in mobile traffic and smart-phone users from six percent a year ago, increasing almost 10 times with a year and a half, Flipkart plans to take advantage of the prospects this business proposition holds.

Myntra , which was acquired by Flipkart last year stopped selling on its website from May 1. Both Flipkart and Myntra had shut their mobile websites directing visitors to their apps, as a precursor to their move. Currently, Myntra witnesses around 80 percent of its traffic and 70 percent of sales driven by its mobile app. Flipkart also gets 60 percent of sales through its mobile app.

As per a recent Morgan Stanley report, online shopper penetration (as a percentage of internet users) in India is expected to increase from 9 percent in 2013 to 36 percent in 2020, primarily led by mobile users. With mobile usage increasing, advertisement costs (primarily search engine optimisation) are declining as traffic is increasing either directly to the website or through a mobile app. This is also increasing customer stickiness as once an app has been downloaded, customers generally visit that website before visiting any other site, the report said.