Competitive Analysis: Myntra

1

“In business, the competition will bite you if you keep running.

If you stand still, they will swallow you”- Victor Kiam, CEO of Remington

2

3

Need of Competitive Analysis

● To understand the current standing in the market

● To get early feedback and challenge the status quo

● To get new ideas and identify newer trends

○ Examples:

■ Cameras + phones

■ Energy drink (Beverage + Health & wellness drink)

4

Questions to ask yourself● What does the company stand for?

● What is the business model?

● What are the categories of operations?

● How are the products priced?

● What is the company culture?

● Is the company equipped to handle the competition?

● How are the financials and levers for financial maneuvers?

Overview: Myntra (Online Fashion Stores)

5

Company Ethos A Fashion & Lifestyle Company

Parent Company Flipkart - Walmart

CEO Mr. Amar Nagaram

Target Segment Mass premium, Urban 18-35 yrs. Men + Women

Categories Home, Beauty & Lifestyle Products

Private Brands ● ~30% of the overall revenues (maximum margins)● E.g. Roadster, Dressberry, Anouk, HRX etc.● HRX - 51% Myntra, 49% Hrithik Roshan

Competitors

6

Competitors Direct Indirect

MarketplaceAmazon, Flipkart, Club

Factory Meesho, GlowRoad, Bulbul, Offline Fashion

StoresBig Brands Reseller AJIO, Koovs

Private Labels Puma, Nike

Overview - AJIO (Direct)

7

● AJIO, part of the Reliance Retail ecosystem:

○ The largest retailer in India in terms of revenue and part of the overall Reliance

Industries

○ Vineeth Nair is the CEO of AJIO

● Major Companies of Reliance Retail include:

○ Reliance Fresh, Reliance Smart, Reliance Digital, Reliance LYF, Reliance Jewels,

Reliance Trends, footprint and living, Reliance cash n carry, AJIO, Hamley’s

● Mission:

○ Celebrating fearlessness and uniqueness, AJIO.com is constantly looking to

bring a fresh, current and accessible perspective to personal style

Overview - Meesho (Indirect)

8

● Meesho is a social e-commerce platform

○ Founded by Vidit Aatrey and Sanjeev Barnwal in Dec 2015

● In June 2019, Meesho became India’s first startup to receive investment from Facebook

● It has raised $190 M till date and has 1 Cr+ resellers on its Platform. Major fundings include

○ August 2019, it raised $125 million in Series D round led by Naspers, with participation

from existing investors SAIF, Sequoia, Shunwei Capital, RPS and Venture Highway.

Facebook and former Vodafone Group CEO Arun Sarin also participated in the round

Business Model - AJIO

9

Business Model Examples Pros Risks

Marketplace Biba, W etc. ● No inventory risk● Can easily scale to

provide higher coverage

● Low margins● Lower control on

customer experience

Big Brands Reseller

Puma, Nike etc. ● Strong Brand Pull ● Ride on with the

marketing efforts of the brands

● Brand power dilution

● High inventory risk

Private Labels Jiyaa, MDS, MFT Couture etc.

● Highest margins ● Assured supply

High inventory risk

Business Model - Meesho

10

Business Model Examples Pros Risks

Online distribution channel for long tail products

Local brands such as Mobili, Bogmbgx etc.

● Tapping a highly unorganised market with no major organised competitor

● High user stickiness

● Low commission % for the platform

● Handling a large number of resellers and different expectations

Comparative Analysis: Myntra - AJIO - Meesho

11

Factors\Companies Myntra AJIO Meesho

Products 5L+ 2L+ NA

Brands 5000+ 2000+* NA

Sellers 2000+ NA 1Cr+

Return Policy 15 Days (Reduced from 30 days)

30 Days 7 days

App Store Downloads 50M+ 10M+ 10M+

App Store Ratings 4.4 4.2 4.4

App Features Personalisation, Style recommendations

Trends, Basic search, Store led navigation

Social ecommerce, Facebook and

Whatsapp Integrations

Value Added Services

Parent Company

Strengths and Weaknesses - AJIO vs. Myntra

12

Strengths Weaknesses

Strong financial backing by the parent company, Reliance Industries

Relatively new market entrant

● Unaffected by the FDI rules in ecommerce

● Can work with different inventory models and not affected by the regulations like no seller to be more than 25% of the business

Needs to setup teams from scratch for enabling online ecommerce

Strong supply chain and pricing control because of Reliance Retail reach

Fashion is relatively a large area and need to identify the right set of profitable categories

RIL has exclusive master franchisee arrangements with international labels including Diesel, Kate Spade, Steve Madden, Burberry, Canali, Emporio Armani, Furla, Jimmy Choo and Marks & Spencer

Needs to build a fashion first approach to business as opposed to the traditional oil & gas and telecom businesses

Strengths and Weaknesses - Meesho vs. Myntra

13

Strengths Weaknesses

Strong deep pocketed backers It will have strong challenge from horizontal players such as Amazon, Flipkart and Chinese players like Alibaba

It will be favoured by government because it is encouraging local entrepreneurship

Highly price sensitive target audience and hence need to constantly work to keep costs low

First mover advantage in an unorganised market with no major established player

Strong value proposition of providing low cost high quality products

End Note

14

● Fashion is $50B+ opportunity in India and online Fashion is still 3-5% of it○ Majorly online fashion is controlled by Flipkart + Myntra (accounting for about 70%+ of

revenue)● But the entry of Reliance (AJIO) in the scheme is expected to change the numbers over the

years○ Reliance Retail is the largest retailer in the country○ It operates over 11,300 stores pan India with ~26 million square feet of retail space and is

growing rapidly○ AJIO + Reliance Trends is the central piece of its offline to online story in the Fashion

category○ Reliance is not affected by the e-commerce FDI guidelines and has a higher control on

pricing, discounting and customer experience● Players like Meesho will move up the ladder to target more premium buyers because the

margins are higher● Hence Myntra should focus on keeping a close eye on both direct and indirect competition

15

Disclaimer

●●

●

●

●●

●