Myntra, the online fashion retailer, said that it has been consistently integrating over one new international apparel, beauty, and lifestyle brand each week, on average, since the onset of the pandemic. This strategic move has enabled Myntra to circumvent the overall retail market slowdown for over a year. With a current portfolio boasting 420 global brands, this Flipkart subsidiary now derives approximately a quarter of its revenue from international brands. Notably, just two years ago, Myntra had 280 international labels in its collection.
“The scale at which we provide access to brands allows us to unlock value at scale,” said Nandita Sinha, chief executive officer of Myntra. “It’s not about the discounting, but when you are able to operate a brand at this scale in the country, the attempt is always to get the right fashion at the right price.”
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She mentioned that nearly 45% of Myntra’s sales now come from small towns, driven by a high demand for premium and international brands. This sharply contradicts the rural slowdown, especially in the basic staples and groceries segment.
“The ability to get exposed to international trends post pandemic is much higher than what it was five years back,” Sinha said.
With a record 75 million new app users in 2023, Myntra demonstrated impressive customer growth despite the broader challenges faced by the fashion retail segment. Since January of last year, the industry has been grappling with a demand slowdown attributed to inflationary headwinds.
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The overall retail growth slowed to 6% in both March and April, with a slight increase to 9% in August and September. Subsequently, it experienced a minor decline to 7% in October and November, as reported by the Retailers Association of India. Despite this deceleration in the market, Myntra claimed to have outperformed. In the fiscal year 2023, the online retailer recorded a notable 25% growth in revenue, reaching INR 4,375 crore from INR 3,501 crore in the previous year.
“We have six million customers who come to us 30 times in a month. We are like Instagram for them,” Sinha said. “Now, if they are coming this frequently, how do you cater to their fashion needs?… How do you build excitement for them? How do you cater to all of the occasions that are important for them? And I think we have stuck to that way of thinking,” she added.
Over the past few years, India has successfully attracted several major apparel brands, including Gap and Uniqlo, to establish their presence in the country.
Leading international apparel and fashion labels like Zara, H&M, Levi’s, and Uniqlo have resonated strongly with the youth in India, achieving sales growth within the 40-60% range in FY23. This stands out against the prevailing market trend, where the demand for discretionary products has seen a slowdown. Sinha mentioned that India, with its sizable and growing young, digital-savvy, and affluent population, remains one of the largest economies.
“If you go across the world, there is always a capping of the growth. In India, we are not anywhere near the cap, so I think we are not going to grow at a nominal rate of GDP like that. Our GDP is growing much faster than the rest of the world,” she said. “Also, the opportunity for expansion in the way the customer set is growing and affluence is growing is what is really exciting,” Sinha added.