Flipkart-owned Myntra said it is confident of hitting profitability by the end of this fiscal, as it ramps up offline presence for its partners like Mango and Esprit across the country.
According to a PTI report: Myntra has struck master distribution and management rights deals with brands like Mango and Esprit to help them build an Omnichannel (offline and online) presence in India.
“I want to make sure the customer experience is the same both online and offline. As we do more of this, we create a platform that can go across brands,” CEO of Myntra and Jabong, Ananth Narayanan told PTI.
Another aspect where the strategy helps is in faster delivery and reaching out to new customers, he added.
“Still pushing for it, we are on track for January-March 2018, EBIDTA zero and then profits. Offline, I think, will help,” he told PTI adding that the impact of investments in offline will help increase online sales.
Narayanan cited the example of Roadster brand, which has a retail store in Bengaluru. He said the online sale of the brand increased after the brick-and-mortar store opened up.
Most e-commerce companies, though heavily funded by investors, continue to burn money on promotions and marketing and are yet to turn profitable.
Myntra which already sells Mango brand of apparel on its platform — today said it has set up the first Mango store in Delhi with four other stores slated to come up in cities like Mumbai and Kolkata before the end of the year.
Under its partnership with Mango, Myntra plans to set up 25 stores in the next five years. The companies expect to see about 250 per cent growth in business and a 50:50 split between online-offline sales.
“The new store is equipped with advanced technology to provide a seamless shopping experience for customers in India. All Mango stores in the country will feature integrated inventory and the concept of ‘Endless Aisle’ and they can have goods from other stores delivered to their doorstep,” Executive Vice President, Mango, Daniel Lopez said.
Narayanan said Myntra, in the next 3-6 months, will work on bringing in facilities like pickup from the stores, easy returns at the store for online purchases, among others.