Fashion & Apparel industry has everything to awe about – enormous size, large customer base, and big room for creativity along with round the year demand. Nothing is permanent – this simple line defines the trend followed by apparel industry. Today what is fashion could become no body’s choice tomorrow. Myntra’s success in this highly unorganized sector is definitely one of the most talking points in E commerce industry.
Let us take a short dive in the fairytale rise of Myntra-
Myntra started as India’s largest on demand personalized brand for products, gifts and cool merchandise. It sold a complete range of products and gifts fitting to every occasion. Myntra was the first store to sell personalizes IPL T shirts. Its innovative concept of “Designer community” was an instant hit and its online affiliate program allowed users of partner website to personalize products of their choice on Myntra. No limit on minimum order quantity, multiple payment options, ultra-fast delivery of products, well-functioning operations made Myntra a sign of fashion.
In 2010 Myntra decided to switch from personalization based business model to direct selling of apparel. Already riding on the wave of previous success, new business got instant hit. Rising internet penetration and smart phone sale helped Myntra in gaining confidence of fashion lovers. As per Myntra, they tried to get emotionally connected to their customers. They made a rich catalog and served customers with a wide variety of latest fashion. Delivery within 48 hours due to extensive warehousing and cash on delivery type of payment ensured that customers would love Myntra.
Being first in many innovative areas, Myntra recently closed down its website and went to “App only” mode. Customers will now be able to place order to Myntra only through mobile based platform. While critics are busy telling it a move ahead of time, Myntra is busy in consolidating its customer base and in betterment of customer experience.
In current market, many players are trying to enter into the big E commerce market. One with better strategy will lead others. FS Labs analyzed the business model of Myntra and came up with certain point of improvement.
Enhanced Product Base
Since the market volume of clothing is so gigantic and chaotic that the scope of improvement is adequate to align this market volume. Separate players are also trying to infiltrate the potential market base of Myntra by addressing one particular feature or another vertical. Myntra could make its business model enormous by introducing following verticals –
Local Boutiques – The market volume of local boutiques is so high that the penetration into this market base by ready-made clothing would be difficult. Factors that attract customers towards local boutiques are moderate cost, customized design and perfect fitting. So Myntra could introduce a separate vertical into its existing business model for local boutique to capture the untouched market base-
- Market base of small to large scale buying capacity
- Market base of customized requirements buyers
- Market base of Window Shopping buyers
Here are few tips to align this large volume base:-
- Separate shop of local boutique on Myntra to enhance the product base
- Option to contact nearby or preferred boutique for customized requirements of customer
- Option to place online order of customized product to save time of demanding consumer base
The introduction of local boutique into the existing system requires a lot of quality assurance work, that could be managed by Myntra itself during initial phase of expansion into this vertical and then it could be made user driven by providing option of user rating and review.
Local Market Base – Local market volume of clothing is a large vertical to capture and enhance the product base. So Myntra could also introduce a new vertical of market base model like e-bay, snapdeal where seller could sell their product and create a win-win situation for both the stakeholders. The benefits would be for all, Myntra, Users and Local Market-
- Myntra – Enhanced Product Base, More Market Base, Enhanced Profit
- Users – Local Products, Local Market Tracker
- Local Market – Seller Profit
The control on quality could easily be managed by Myntra during selection phase itself.
Enhanced Customer Base
Since the customer base of e-commerce is quite limited to the urban market, the untouched market base of non e-commerce user could be tapped by Myntra. Here are few tips from FS Labs to enhance the customer base-
Combined App and Web Setup – Myntra changed its base from Website to App considering the cost data consumption, user behavior analysis etc. But there is adequate market volume that is reluctant towards App based shopping as the feel of product is a big question while choosing between App and Website base. Switching to App base was definitely a proper analyzed decision by Myntra, but it could be made better by providing following –
- Option of web view on wish list – so that consumer can have the options of App based ease aligned with web browsing experience of desired products.
- Option of web view of high cost items – so that consumer shouldn’t feel hesitated while purchasing high cost products.
Timer for Product Discount – Most of the times consumers complain that the product prices got changed while they were purchasing or the price is wrongly discounted ( i.e. the discount on the product is just to misguide from the actual price). Myntra could easily solve such issues by introducing following-
- Timer for Discounted Price – so that consumer can easily decide the time-span that is suitable to place order rather than going for other browsing.
- Feedback for Price – Consumer based feedback mechanism for price review will ensure the credibility of Myntra that is losing on the basis of wrongly discounted products.
Virtual Trial Room – Another issue that consumer faces with the existing setup are the sizing help and product look on person. It could be resolved by following-
- By providing an option of uploading your pic or integrating camera with it so that user could get the look of product on him/her. (Consumer feedback is required for this strategy as they might be reluctant by considering privacy issue)
- By providing an option to alter the size of model as per user body structure and then changing the size of clothing.
- Missed deliveries and reverse logistics could be avoided by providing pickup points for the products.
- Better alternative for web based consumers is by providing virtual shopping store where the product catalog would be shown on large screen and consumer could select the products like window shopping.
Rural Market – Major revenue of Myntra or any of the e-commerce business is getting generated from urban market only. The potential of rural market is large and hence Myntra could enhance its market volume by capturing that market base.
The problem of improper infrastructure at rural areas could easily be solved by providing virtual shopping stores at rural location where people could easily see the large product catalog to decide the desired purchase.
This was the small analysis by FS Labs on the betterment of Myntra. Stay tuned for more updates.