Myntra to shift to marketplace model

Myntra is looking to tweak its primary business model. The Flipkart-owned fashion e-tailer has been focusing on a marketplace as opposed to its current strategy of being an inventory-led business. It has sent out communications to third-party merchants, asking them to sell on its platform. In an inventory-led model an e-commerce company buys stock in advance prior to selling it to customers, while in a marketplace model the online retail platform connects customers to third-party sellers which becomes less capital-intensive. Myntra’s inclination to push for a marketplace model comes at a time when the company’s top focus has been on clocking profitability.

Myntra’s parent firm Flipkart runs largely on a marketplace model even though it has select alpha sellers. Myntra has been relying on a controlled inventory model, working closely with big merchants like Vector E-commerce and Tech Connect Retail, among others. Myntra and parent Flipkart together held 60 per cent share of the online fashion and lifestyle market in the country.

With over 2,000 fashion brands Myntra hopes to become profitable by the financial year 2018. For customers Myntra is leveraging artificial intelligence and machine learning for a personalised shopping experience, better product discovery and assisted buying. The company is targeting strong growth in new segments such as home furnishing.