Making the largest merger in the e-commerce space in India, home-based e-retailer Flipkart recently obtained online fashion retailer Myntra. Set up in 2007 at Bangalore, Flipkart has diversified to sell many products across electronics, fashion, white goods and furniture apart from books – its initial offering. With this acquisition, Flipkart is expected to invest over $100 million in Myntra.
Given that Myntra’s acquirement is going to include new stock to its fashion vertical together with more private brands, it is also going to improve the merchandise range on Flipkart. This merger will also aid Flipkart to reinforce its fashion portfolio and compete more assertively with peers like Amazon and Snapdeal. Similarly, Myntra can also profit from backend and delivery army of Flipkart for speedy order fulfillment.
These e-tailers have to confront on two-fold aspects. One is the smooth integration while the second one being to get shoppers to purchase from Flipkart, a task Flipkart’s apparel vertical team found it tricky as shoppers prefer to stick to specialized lifestyle e-tailers.
Fashion e-tailing is currently being conquered by Myntra and Jabong. As market trends reveal, Flipkart is sought after for purchase of sports apparel while Myntra is well established retailer for fashion apparel and accessories that too, offering a wider range of inventory & its management. It is this fashion apparel niche of Myntra that could now become a major profit grosser for Flipkart
The Flipkart-Myntra merger could mark the beginning of maturity of the ecommerce retail scenario in India.