Heights of overconfidence: Myntra sales dip 10% in app-only mode in less than a week!

swatkats

swatkats

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Myntra.com, India's largest online fashion retailer, has seen a 10% drop in sales since it shut its website and turned a mobile app-only etailer last week. The company, owned by Flipkart, had factored in such a decline and hoped to return to the level of sales prior to the move in the coming weeks, according to a source. Its closest rivals, Snapdeal and Amazon, however, said they had no plans to wind up their websites and focus only on mobile phone users.

Myntra, which reportedly generates more than 90% of its traffic and 70% of its orders from its mobile app, closed down its website last Friday and moved to a mobile-only platform.

Its parent, Flipkart, plans to follow suit within a year. The move is driven by rapid penetration of smartphones in the nooks and corner of the country. Another rationale is that focusing entirely on the mobile app will help the e-commerce player give customers a better shopping experience.

Source: http://economictimes.indiatimes.com...to-play-safe-for-now/articleshow/47364673.cms
 
That's a very small drop if you ask me. I have expected a 35~45% drop and then more gradual decrease as people realize that they are not paying less compared to another platform.
 
I have a friend working for myntra... We did have a discussion long back when myntra was planning for this app only approach... Even the employees themselves know that the sales would decline but nevertheless they were gonna give it a try and do something new like a mobile shopping revolution similar to the online shopping revolution...
Once the sales decline even more, they will bring back the website... :p
 
swagatrath said:
I have a friend working for myntra... We did have a discussion long back when myntra was planning for this app only approach..
Once the sales decline even more, they will bring back the website... [emoji14]
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Ask your friend about sales after 1month. He will say 50% drop.

Looks like they have some sale today with limited stocks. Like @Lord Nemesis said its only a matter of time for the customer to realize.
 
^ they've been throwing out coupons ever since the shift to app only medium. There some sale everyday. Only thing is i don't see difference in prices. I've seen prices going up but not coming down. Amazon has lesser prices on some clothes than myntra.
 
10% is actually a pretty good number surely?

Myntra, which reportedly generates more than 90% of its traffic and 70% of its orders from its mobile app, closed down its website last Friday and moved to a mobile-only platform.
Click to expand...

So if only 70% of their revenue was on the app previously and they only lost 10% by moving to the app then the app revenue actually increased.

Not that I am ever keeping any shopping app on the phone. FK is getting ditched by me permanently once they dont have a website.
 
One other point to consider is whether the 10% is decline in total revenue or in mobile revenue.

I cannot imagine people searching and ordering clothes on a mobile device. They might have been using the mobile for placing order to to avail discounts, but majority of searching would still have been on desktops.

In any case, I all smartphones (iOS/Android/Windows Phone) are insecure and vulnerable to attacks. Numerous security issues get reported every day. I am not sure using your credit cards or debit cards on mobiles is a good idea at the moment.
 
Their major sales were on App because they were giving additional discounts to tune of 2% to 10% on app . Select on website and pay through app . Its PIA to search on app when 10000+ items are listed . Haven't opened app from the date website closed
 
I used to search using the website and add items that I wanted to buy to cart. Then go to the app and use app-only codes to get a discount and buy. I never was able to use the app to find items of interest as easily as on the website. Perhaps some of you have also tried this out?
 
Is Myntra foregoing growth for profit?
It plans to become profitable by 2016; many feel it may be too early for the e-tailer to consolidate its position


At a recent press conference hosted by online fashion retailer Myntra in Bengaluru, the word 'profit' came up far more often than at any other e-commerce-related event in the city in the past.
While it was a landmark event for the Flipkart-owned company, as it was announcing its plans to go "mobile only", the conference turned out to be of significance for the Indian e-commerce sector at large, after Myntra's Founder and CEO Mukesh Bansal said that the company was focused on turning profitable and hoped to do so by the end of 2016, nine years after it started operations.

http://www.business-standard.com/ar...regoing-growth-for-profit-115052101469_1.html
 
^^ Unlikely. While it may seem to the amateur like they may have reduced costs by going app only, they have not reduced any costs. All their existing infra still has to be around. All of their web services would have to be around and its just that the front end is an app instead of a web page.. The only thing they have reduced is their potential user base.
 
Decision to go app-only reducing Myntra's popularity among consumers

Harshvardhan, an engineering student, believes that Myntra’s product range (casual lifestyle) is such that every detail needs to be carefully viewed. “In India we do not have smooth network on the go, whether you are on 3G or 4G. Unlike gadgets where you are only bothered about specifications, with apparels you really need to figure out how the dress actually looks like, what fabric has been used and so on. This is impossible on patchy mobile networks. Thus I prefer buying products from e-commerce websites instead of apps,” he said
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“Myntra took this decision in haste. The timing was not right to completely scrap the desktop/PC website. However, I can see that the app-only approach can help them save a lot on infrastructure by cutting down on bandwidth and requirements of adding additional servers,” said Deepak Chauhan, CEO of Vosco, a Web design company.
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http://techcircle.vccircle.com/2015...-reducing-myntras-popularity-among-consumers/
 
i dont get it at all,i thought businessmen were shrewd and played to acquire every last % of revenue they can and these folks here are throwing away avenues that constitute 30%?
i hope when flipkart does it they release an app for the windows store(desktop),its a pretty good price checking tool.
 
You guys realise that it's ROI on Website v ROI on mobile that matters and not just sales dip.

Of course there was going to be a dip in sales when you shut down 1 channel of sales. Customer experience has taken a hit and availability but that's the trade off.

It's the same for every other APP. All mobile based offers and coupons are better than the website counterparts. How else will xiaomi phones sell otherwise?
 
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