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Tag: jabong

  • India’s Myntra Starts Selling on Walmart USA

    India’s Myntra Starts Selling on Walmart USA

    India’s Myntra is expected to begin selling its brands’ products to the US via Walmart.

    The online fashion retailer was acquired by Walmart 10 months ago, since which time Myntra’s brands have been available through Walmart Canada.

    “We enabled Myntra to be online in Canada and we are also anticipating launching Myntra brands in our stores in Canada in Q3,” said Walmart International executive VP and chief administrative officer JP Suarez, “a nice compliment for an omnichannel experience for our customers. We are exploring with US for any Myntra product to be available on the US online marketplace.”

    Walmart is also expected to conduct a study of Myntra’s operations to assess what strategies may be applicable to other markets. The firm holds a major market share in India along with Jabong and Flipkart Fashion.

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  • Myntra India taps 9,000 kirana stores to boost last-mile delivery

    Myntra India taps 9,000 kirana stores to boost last-mile delivery

    Flipkart-owned ecommerce platform Myntra that saw 80 percent revenue fall in FY2018 has doubled down on last-mile delivery, tapping into over 9,000 kirana stores across 50 cities to fast deliver packages. Today, nearly 60 percent of all Myntra’s product pick-ups and deliveries happen through its ‘Kirana Delivery Programme’ — helping the company reduce delivery costs, the company said on Tuesday.

    “Myntra’s ‘Kirana Delivery Programme’ is a successful model introduced by the company to accelerate order delivery in the most efficient way possible, while ensuring we provide a good partnership opportunity to our kirana partners,” a company spokesperson said.

    “We will continue to innovate, expand and hope to register more kirana partners in the future as well,” the spokesperson added.

    The ‘Kirana Delivery Programme’ is an ingenious model introduced by the company to accelerate order delivery, while creating a platform for kirana stores to have an additional source of income.

    “A mutually beneficial model, it has helped Myntra achieve greater consumer satisfaction and is enhancing the standard of living of the owners of several ‘mom & pop’ stores across the country,” said the company.

    Several tailors and beauty parlour owners, among others, have also signed up with Myntra for the programme.

    The online fashion retailer narrowed its consolidated losses to Rs 178.7 crore for 2017-18, compared with a loss of Rs 655.8 crore in the previous fiscal.

    According to business intelligence platform Tofler, the company saw its income growing nearly threefold to Rs 427.4 crore in 2017-18 as against Rs 155.6 crore in the previous financial year.

    Ananth Narayanan, Chief Executive of e-tail portals Myntra and Jabong, stepped down from the post on January 14 “to pursue external opportunities”.

    The 11-year-old Flipkart Group, owned by US retail giant Walmart, includes e-tail sites Flipkart, Myntra, Jabong and digital payment platform PhonePe.

    In May last year, Walmart bought a 77 percent equity stake in the company for a whopping US$ 16 billion.

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  • Ananth Narayanan steps down as Myntra Jabong CEO

    Ananth Narayanan steps down as Myntra Jabong CEO

    Fashion e-tailer Myntra Monday said its CEO Ananth Narayanan has quit, a development that ends months of speculation about his exit following a recent re-jig at its parent group Flipkart. In a statement, Myntra said Narayanan has decided to step down as CEO of Myntra and Jabongto pursue external opportunities. Amar Nagaram has been named as Head, Myntra and Jabong, and will report to Flipkart Group CEO Kalyan Krishnamurthy, it added.

    According to a report, there were speculations that Narayanan would quit after a new reporting structure was put in place when Binny Bansal — the then CEO at Flipkart Group (which owns Myntra and Jabong) — quit the company.

    As a part of the new structure, Myntra and Jabong were brought under Flipkart, with Narayanan reporting to Krishnamurthy.

    “Ananth has played an important role in making Myntra and Jabong into a formidable player in the fashion e-commerce market and steering the company towards sustainable growth,” Myntra said in its statement Monday.

    It added that over the last three and a half years, Narayanan and the management team have built a strong foundation for the company.

    “Myntra and Jabong are an important part of the Flipkart group serving our valuable customers. The company will continue to execute the growth strategy and leverage synergies with Flipkart as appropriate,” it said.

    The strong bench strength and new leadership at Myntra and Jabong will allow the business to continue on its strong and sustainable growth trajectory, the statement added. Nagaram, who recently moved to Myntra from Flipkart, has been working with the group for around seven years.

    “…(Nagaram) has played a pivotal role in making shopping accessible, delightful and affordable on every connected device. Most notably, he led the efforts on revisiting the boundaries of mobile web, making the experience on it as good as native,” the statement said.

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  • 2.5 million buyers shop during Myntra, Jabong special sale

    2.5 million buyers shop during Myntra, Jabong special sale

    About 2.5 million shoppers ordered eight million products during four days of Myntra and Jabong’s special sale from December 22 to 25, a company statement said on Wednesday. “The ninth edition of End of Reason Sale concluded with Myntra and Jabong recording a massive surge in sale and traffic,” city-based Flipkart-owned Myntra said in a statement here. As a result of the sale, the fashion portals saw a 700 per cent surge in sales and 120 per cent increase in online traffic over normal business days, it added.

    American retail giant Walmart-owned leading e-commerce player Flipkart Group includes online fashion portals Myntra and Jabong.

    The Flipkart arms, however, did not disclose the combined value of goods sold in those four days.

    “Sports goods were the highest selling category with a total of eight lakh pairs of shoes sold across the country during the sale,” the statement added.

    The shopping carnival also saw 7.2 lakh new customers ordering through the portals.

    The two portals together sold 1,200 products per minute during the four-day sale.

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  • India’s Jabong merges with Myntra

    India’s Jabong merges with Myntra

    Myntra has announced the integration of Jabong with the brand and Ananth Narayanan will continue to lead the team.“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes. This has resulted in revenue growth and a significant improvement in the customer experience. As the next step in this process, Myntra and Jabong will now fully integrate all the remaining functions including technology, marketing, category, revenue, finance and creative teams,” said company spokesperson.

    “The closer integration of Myntra and Jabong is a necessary step in our continuing development. To remain the leader in fashion eCommerce in India, we have to find ways to operate more effectively and innovate more quickly. By better aligning our resources with our long-term plans, we can put the best structure in place to serve our sellers and brand partners and ultimately benefit our customers.” it added.

    According to the company, Myntra’s independence as a business will be preserved. Myntra team will continue to operate independently to achieve even greater success.

    “We will continue to lead the market, serve our customers, and do what we do best,” according to the company.

    From a consumer perspective, the well-loved Jabong brand will remain.

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  • Cover Story to expand retail presence; open new outlet at Bengaluru

    Cover Story to expand retail presence; open new outlet at Bengaluru

    Cover Story, a fast fashion brand for women by Future Style Lab, will be launching its new store at Forum Mall, Bengaluru in the coming week. This is Cover Story’s 23rd exclusive store with an existing presence across Mumbai, Delhi NCR, Surat, Pune, Kolkata, Chennai, and many other cities. The store is placed at a prominent location in the mall amidst the most fashionable brands around.

    The sprawling area is an apt location for Cover Story with its state-of-the-art workspaces, retail havens, entertainment zone, F&B options, and signature hospitality services.

    The new store’s stock includes the latest Autumn-Winter’18 collection. The collection, designed at the creative headquarters in London, consists of women’s apparel and accessories, which include bags and shoes. The collection is inspired by the best runway trends seen across the world. This season the brand turned to the high streets of cosmopolitan cities for inspiration. When it comes to style in London, there’s nothing like High Street Fashion which displays the best trends from the runways across the world. Cover Story’s AW18 Collection features ready to wear styles that will give the Cover Story Woman (and her BFF) the confidence to turn the streets into their own personal runway. The collection, spread across 9 stories, has encompassed the key trends emerging this season.

    At present Cover Story has 22 exclusive outlets across Delhi NCR, Mumbai, Surat, Kolkata, Coimbatore, Kochi, Chennai, Indore, and Vadodara. Overall, Cover Story is present across more than 80 doors at Central, Kapsons, Iconic & Sohum. Additionally, the brand has its own online store to help cater its customer from anywhere, by simply visiting the website – www.coverstory.co.in Cover Story is retailed through online marketplaces including Myntra, Jabong, Amazon.in and Koovs.

  • ZALORA nabs Myntra CMO Gunjan Soni as new CEO

    ZALORA nabs Myntra CMO Gunjan Soni as new CEO

    Global Fashion Group has chosen the head of Jabong India as the new Zalora CEO. Gunjan Soni will over the helm of the Southeast Asian e-commerce portal early next year after she completes her combined tenure as chief marketing officer with India’s largest fashion e-commerce business, Myntra, and the Jabong role.

    Soni has more than 13 years of leadership experience in marketing, strategy and operations and a passion for building new-age consumer businesses.

    “It is truly a huge privilege to lead Zalora, which is already the leading fashion and sports destination, at a time when Southeast Asian markets are poised for increasing fashion and e-commerce consumption,” she said in a statement.

    “When I see Zalora, I see a company with limitless potential and ability to shape the future of fashion commerce in one of the most exciting markets globally. This makes it both exciting and humbling to take on this role.”

    At Myntra, Soni was instrumental in positioning the brand as a leader in fashion and lifestyle and leading the turnaround of the Jabong business post acquisition.

    Prior to joining Myntra, the next Zalora CEO was executive VP for strategy & CEO office with Star India. She also spent a large part of her career at McKinsey where she was a partner, working across multiple consumer sectors and geographies including the UK, Singapore and Bhutan.

    She is a recognised leader in business having featured in Spencer Stuart-Economic Times young leaders 40 under 40 list, Fortune India 40 under 40, and named one of the most influential women leaders in media.

    Patrick Schmidt, Co-CEO of Global Fashion Group, Soni’s experience in leading operations, strategy and marketing in fashion e-commerce and her strong leadership skills will be instrumental in strengthening Zalora’s position as market leader in Southeast Asia’s e-fashion space.

    “She has a deep and broad understanding of the complexities of e-commerce and has contributed to building one of the world’s biggest fashion e-commerce companies.”

  • Jabong announces the 4th edition of its ‘Big Brand Sale’, targets big growth

    Jabong announces the 4th edition of its ‘Big Brand Sale’, targets big growth

    India’s leading online fashion brand, Jabong, has announced the dates of its much awaited Big Brand Sale (BBS). The 4-day shopping extravaganza will be held between the July 27-30, with discounts ranging from 55-80 percent, across all product categories. The fashion major is offering 4 lakh styles from over 3,000 international and Indian brands at very attractive discounts. Over 1 lakh styles are for the first time on over 50 percent discount, in addition to over 80 percent off on more than 15,000 styles.

    The 4-day fashion festival on Jabong will see never before deals on premium brands like U.S. Polo Assn., Calvin Klein, Next, Adidas, Nike, Guess, Superdry, Mango, Fossil, Dorothy Perkins, Lee Cooper, Vero Moda, Jack& Jones, Puma, Blackberrys, Lakme, Lavie, Sangria and many more.

    Ananth Narayanan, CEO, Myntra-Jabong said, “The Jabong Big Brand Sale is our marquee property that aims at celebrating premium fashion in a unique way. We have witnessed a significant growth in the last 3 editions, and we are expecting 100 percent growth this edition over last year’s Big Brand Sale in July. We are anticipating 25 million sessions across platforms, acquiring 4X new Jabong customers as compared to same edition last year.”

    Speaking about the Big Brand Sale, Gunjan Soni – Head of Jabong, said, “Jabong customers are fashion forward and have a taste for international, premium and exclusive styles. The Big Brand Sale is a unique sale which has a disproportionate focus on global brands and is in line with Jabong’s affluent consumer base. It is a great opportunity for them to acquire their favourite brands at great discounts ranging from 55-80 percent. Over 1 lakh customers will also get exclusive VIP slots to shop before millions of other shoppers, leading to 15X sale during the slot hours vs. a normal day. We are prepared to provide a great shopping experience to over 13 million customers over the 4 days of BBS, leading to 4X traffic during peak hours compared to a normal day. This time we are also offering 100 percent cashback (in Jabong points) to all our customers to make their shopping experience on Jabong much more exciting.”

    Jabong promises an extraordinary fashion experience to its customers and is launching an exclusive on-demand stylist service on Whatsapp for these 4 days. Jabong customers can Whatsapp their wardrobe picture to get curated looks and personalized fashion advice from an in-house fashion expert.

    For each edition of BBS, Jabong encourages its customers to wishlist their favourite products to avoid missing out on buying them at great discounts. Sale prices will be revealed at 7 pm on July 24, and customers can continue to wishlist till 7 pm on July 26. Jabong will start allotting the VIP slots to select consumers who can buy the wishlisted products from 7-11 pm on July 26, before the sale goes live. Shoppers can also earn their slots by wishlisting or playing amazing games on the Jabong app.

    In addition, Jabong is offering 10 perent cashback using HDFC credit and debit card of up to Rs 750 on a minimum spend of Rs 3,000. New customers will get free shipping on their first orders.

    The Jabong Big Brand Sale is India’s biggest fashion bonanza of the biggest brands. Bigger and better than the previous edition, the current edition of BBS will offer an out-of-the-world experience to its customers. Jabong also launched its 360-degree marketing campaign on July 21 to support this property.

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  • Jabong becomes the third largest global digital partner for Dorothy Perkins

    Jabong becomes the third largest global digital partner for Dorothy Perkins

    Dorothy Perkins, the UK-based women’s fashion retailer, which has been dressing and inspiring women worldwide for more than 100 years, has announced Jabong as their third largest global digital partner. The brand is available on Jabong, with an extensive collection of over 3,000 SKUs, which are currently priced within a range of Rs.999 to Rs.7,999. In the last three years of this association, Jabong has recorded a 50% CAGR in sales.

    John Kenchington, Multi Channel Director, Dorothy Perkins said, “As one of India’s best loved fashion e-tailers, Jabong has been our partner of choice in India since 2014. They have helped us position our brand to the right audiences in a way that matches perfectly with our persona. Their immense contribution towards raising brand awareness for us in the country, is a testament to Jabong’s track record of providing the ideal launch pad for top global brands entering India.”

    Gunjan Soni, Head, Jabong said, “Our team is exhilarated that Jabong has emerged as the third largest partner for Dorothy Perkins worldwide, even though we only sell in India. It is actually a salute to our fashion forward women consumers who form the major share of our customer base. Dorothy Perkins with its continued focus on fast fashion is one of the most loved brands on the platform. We will continue to ramp up our efforts to provide the best of international fashion to our consumers.”

    Jabong has been aggressively expanding its product portfolio and has added 50+ new brands this year with a special focus on adding international brands. A few of these include New Era Caps, Forever 21, Mothercare, Cover Story, AAY, Aeropostale, Scotch and Soda, Esprit, Alcott, Antony Morato, North Face, Mast and Harbor and Swarovski among others.

  • Jabong adds international fashion wear brand Esprit to its product portfolio

    Jabong adds international fashion wear brand Esprit to its product portfolio

    India’s leading fashion etailer, Jabong has announced the addition of another leading international fashionwear brand, Esprit, to its product portfolio. A publicly owned manufacturer of clothing, footwear, accessories, jewellery and housewares, Esprit will be available on Jabong for men and women in more than a 1000 variants across categories such as apparels, watches and bags with the prices ranging from Rs. 499 to Rs. 16999. The Esprit launch will be supported by digital and social media campaigns and through Esprit logo promotion on Jabong’s latest TVC.

    “We are delighted to partner with Jabong, which is credited with bringing top premium global fashion to India. Effortless style, authenticity and easy-going living are a part of the ethos of Esprit’s brand philosophy which resonates well with Jabong’s brand philosophy of ‘be you’. Jabong’s upmarket, fashion forward customer base is the exact target audience to optimize our online presence in India, and we look forward to our lasting partnership with Jabong,” said Guillaume Thery, General Manager Asia-Pacific, Esprit.

    Gunjan Soni, Head of Jabong, adds, “Esprit is an excellent addition to our finely curated international casual fashion portfolio. Through its natural materials and made-to-last quality, Esprit offers effortless style, authenticity and easy-going living. Jabong has come to be known for its selection of premium, luxury brands and we will continue to add the hottest fashion brands to our collection in the coming months.”

    Esprit has been representing style and quality since 1968 and has a presence in 40 countries. It works on a basis of creativity and responsibility, fused with a sunny Californian attitude, that is expressed in its effortless, relaxed and comfortable Esprit style. It is a member of the Business Social Compliance Initiative (BSCI), which works against child labor, and is a founding member of the Sustainable Apparel Coalition (SAC).

    Jabong is expanding its product portfolio aggressively and has earlier added 35 brands in this year including New Era Caps, Forever 21, Aeropostale, Scotch & Soda, Antony Morato, Forever New, Mothercare, Gstar, Elle, Columbia, Speedo, All About You, Roadster and Wrogn among others. It also recently launched the Jabong Mood Store, which is India’s first-ever innovative comprehensive online store that allows the entire look to be shopped together, rather than buying different clothes and accessories separately and then pairing them.

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  • Jabong launches ‘The mood store’ – shopping innovation rooted in fashion insights

    Jabong launches ‘The mood store’ – shopping innovation rooted in fashion insights

    Jabong, India’s leading online fashion retailer, launches the ‘Jabong Mood Store’, which redefines how India shops for fashion online. The Mood Store is the first-ever comprehensive fashion store that allows consumers to shop the entire look per their mood. The store is based on deep consumer understanding and analytics around preferences of the Indian fashion customer.

    The Mood Store will help users understand the best choices across moods like hanging out with friends, out for a road trip, stay at home pampering, and working at the office, among many others. Users will also be able to select the entire look based on different price points basis their needs. Building on Jabong’s brand philosophy of ‘Be You’, the Mood Store is the next step in Jabong innovating for growth.

    The Mood Store launch is supported by a 360-degree marketing campaign across TV, outdoor, cinema, CRM and social media. The overall brand campaign will focus heavily on digital promotions where various influencers will showcase their looks in different moods and for different occasions. The commercial will be aired on leading TV channels in entertainment, music, movies, lifestyle and other genres.

    The Mood Store brand campaign will feature day-to-day fashion that is easily shoppable and wearable, as against the typical industry trend of showcasing outlandish, runway fashion that the shoppers grapple to find anywhere. Digital shoppable videos on YouTube and Facebook will allow customers to buy the fashion shown in the video directly by clicking on its product card

    Gunjan Soni, Head of Jabong, says, ‘We understand both fashion and our consumers really well. Jabong consumer is more affluent, well-travelled, fashion forward and likes to buy complete looks, not just apparel. Fashion shopping behaviour tells us that people buy for a specific mood or occasion, not by categories. This insight led to the mood store innovation where consumers can shop entire looks together for a specific mood. With the launch of mood store and several new brand launches we are well set for a growth momentum. Our strategy is to use ‘tailored to fashion’ innovations to attract and retain the experienced fashion shopper. ‘

    Jabong is credited with launching several industry-firsts in Indian fashion ecommerce such as ramp walk video, online shoppable fashion week and the concept of online shop-in-shop. It has also brought several top global brands exclusively to the Indian market. Its high-quality product curation, top international brands, and a deep assortment that caters to the needs of a complete wardrobe make Jabong ideal to launch this unique fashion proposition as a one-stop destination for all moods and styles of a fashion shopper.

  • When Forever 21 join India’s Jabong

    When Forever 21 join India’s Jabong

    Indian fashion portal Jabong has added American fashion brand Forever 21 to its product portfolio. It definitely will give another option for India’s shopper to check the collections of Forever 21.

    A selection of goods including play-in tops, dresses, t-shirts, cosmetics, intimates and shoes will go online on Jabong, priced from Rs.499 to Rs.2400 (US$7.50 to $37).

    Jabong has introduced 20 new fashion brands this month and says it will add a further 15 before March 31. These include New Era Caps, WROGN, Mothercare, Roadster, Cover Story, AAY, Zivame and Mast and Harbor. Jabong now has approximately 2000 brands in its product portfolio, out of which 50 brands have been launched in 2017 alone. Its portfolio also includes Topshop, Topman, Dorothy Perkins, Missguided and Next.

    “At Jabong, we continuously strive to offer the best of global fashion brands to our shoppers. Forever 21 is a pioneer and global leader in the fast fashion category and its addition will strengthen the comprehensive line of finely curated international portfolio on Jabong,” said Gunjan Soni, head of Jabong.

    Abhinav Zutshi, India business head of Forever 21, said the combined strengths of Jabong and Myntra will give the brand exposure to a major share of India’s online fashion retail market.

    “This complements our aggressive offline strategy and we are excited to herald a long association with Jabong,” he said.

    Jabong is a multi-brand fashion e-store offering some 350,000 products across footwear, apparel, jewellery and accessories.

  • Jabong adds American fashionwear brand Forever 21 to its product portfolio

    Jabong adds American fashionwear brand Forever 21 to its product portfolio

    India’s leading online fashion portal Jabong has announced the addition of American fashionwear brand Forever 21 to its product portfolio. The brand, which is the 5th largest specialty retailer in the United States, will be available on Jabong in variants across the apparel, accessories and footwear categories such as play-in tops, dresses, t-shirts, cosmetics, intimates and shoes with prices ranging from Rs.499 to Rs.2400. 

    “At Jabong, we continuously strive to offer the best of global fashion brands to our shoppers. Forever 21 is a pioneer and global leader in the fast fashion category and its addition will strengthen the comprehensive line of finely curated international portfolio on Jabong,” said Gunjan Soni, Head of Jabong.

    “We are thrilled to launch on Jabong, which has carved a unique niche among the upmarket fashionistas of India who swear by the hottest international designs. The combined strengths of Jabong and Myntra help us cover a major share of the online fashion retail market and uniquely curate our products to cater to the shopper preferences on each platform. This complements our aggressive offline strategy and we are excited to herald a long association with Jabong,” said Abhinav Zutshi, India Business Head, Forever 21. Since 1984, Forever 21 has redefined fashion for the youngsters and has expanded its footprint in more than 47 countries worldwide. 

    With Forever 21, Jabong has now added 20 new brands on its platform in March itself and will be taking the number to 35 by the end of this month. Brands added to Jabong this month include New Era Caps, WROGN, Mothercare, Roadster, Cover Story, AAY, Zivame and Mast and Harbor among others. Jabong now has approximately 2000 brands in its product portfolio, out of which 50 brands have been launched in 2017 alone. Jabong’s Head, Gunjan Soni adds, “We are super-charged with an array of top label launches on Jabong this month, which has injected fresh energy in our team. We have more compelling labels in the offing and will continue to delight our shoppers with the latest and hottest in fashion.”

    Jabong is known to have introduced a multitude of fashion brands in India in the past such as TOPSHOP, TOPMAN, Dorothy Perkins, Missguided, Next to name a few.

  • Revenue up 36pc for Zalora parent

    Revenue up 36pc for Zalora parent

    The Lazada and Zalora parent is paring back its losses after divesting operations in two markets.

    With operating losses nearly halved and excluding disposals in India and Southeast Asia, Global Fashion Group (GFG) has reported a 36.3 per cent rise in net revenue.

    Backed by Rocket Internet and comprising online fashion retail businesses in emerging markets, GFG says net revenue in constant currency rose 47.5 per cent to 456 million euros (US$512.73 million).

    GFG sold interests in Thailand and Vietnam for an undisclosed amount to retailer Central Group in April. It also sold its Indian fashion business Jabong to Flipkart for $70 million in cash in August.

    GFG raised 330 million euros in funding from existing investors in July, cutting the holding of Rocket Internet to 20.4 per cent.

    The company says adjusted losses before interest, taxes, depreciation and amortisation (EBITDA) narrowed to 67.6 million euros in the first half of this year from 120.5 million euros in the same period last year. The EBITDA margin improved to a negative 14.8 per cent in the first half from minus 33.4 per cent, which the company says was driven by tighter inventory management and cost-cutting.

  • Flipkart trumps rivals in Jabong bid

    Flipkart trumps rivals in Jabong bid

    A year ago, Jabong’s founders turned down $700 million plus from Amazon; this week they sold for $70 million to Flipkart’s Myntra.

    Indian eCommerce site Flipkart has sealed a shock deal to acquire Jabong, the nation’s third largest online fashion retailer.

    The news came just a day after rival bidder Snapdeal presumed it had won the battle.

    Flipkart’s success is expected to provide a crucial advantage in its battle to ‘own’ the clothing eCommerce space, giving it an advantage of scale and local knowledge in fighting off US-based Amazon.

    Flipkart’s subsidiary Myntra will reportedly pay US$70 million for the troubled Jabong business. That’s a fraction of an offer from Amazon in early 2015 which valued Jabong at between $700 million and $1 billion.

    “The acquisition…. holds an important lesson to all investors and entrepreneurs,” observed Harsimran Julka of Tech in Asia. “Exit when you don’t want to sell.”

    Jabong is one a growing group of failing Southeast Asian eCommerce websites owned by Germany’s Rocket Internet which has witnessed the value of its businesses shrink dramatically over the last 12 to 18 months. It has sold off Foodpanda, Zalora and Lazada websites in several regional markets in a bid to stem growing losses.

    “The acquisition of Jabong is a natural step in our journey to be India’s largest fashion platform,” said Ananth Narayanan, CEO of Myntra. “We see significant synergies between the two companies especially on brand relationships and consumer experience.”

    Julka wrote that in buying Jabong, Myntra will acquire one of the best sourcing systems, catalogs, and loyal customer bases, especially amongst women buyers, within India.

    “With Myntra’s app-only experiment going kaput last year, the company lost a lot of traction in India.

    “The buyout will also give a boost to profitability of Flipkart, as the fashion category is the most profitable of all eCommerce segments, with gross margins as high as 80 per cent.”

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