Myntra to Foray into Home Furnishing and Jewellery
Flipkart-owned online fashion marketplace gets into new segments to shore up profits, while startup fashion portals plan aggressive expansion Move part of co’s initiative to expand consumer base for attaining profitability by 2017
Bengaluru: Flipkart-owned online fashion marketplace Myntra is diversifying into home furnishing, precious and non-precious jewellery and personal care segments in an attempt to widen its consumer base and shore up profits.
Myntra had restricted its presence to apparel and accessories, but will now take on focused players in the space such as Urban Ladder, Pepperfry, Nykaa and Bluestone.
“This is a big bet for us to take our first step to expansion in the lifestyle segment, which will also help us meet our set target of attaining profitability by 2017,” said Ananth Narayanan, CEO at Myntra, adding the company expects revenues of .₹ 500 crore from the home furnishing segment in the next two years. The company has tied up with 40 brands for the home furnishing segment, and will enter the personal care products space and jewellery segments by July. “In all these categories, we will be looking at mass premium segment where the margins are high, so it works for unit-economics,” said Narayanan.
Sources said Myntra was toying with the idea of selling home furnishings and precious jewellery nearly two years ago, but decided not to venture into the space as home furnishing was high on logistics costs and had low repeat orders. Also, the precious jewellery category demanded hi-tech features such as live chats and more, which they didn’t have then.
According to industry analysts, home furnishing is a .₹ 3,000-crore category and is growing at 70% year-on-year. The estimated size of the domestic jewellery and bullion market in India is between $30 billion and $40 billion, respectively, and online sales of fashion and fine jewellery combined stood at $150 million in 2015.
Myntra has tied up with 40 brands for the home furnishing segment, and will enter the personal care and jewellery segments by July