The new structure seems to be aimed at increasing the volume of orders and sales frequency-especially in segments with lower prices-the location of the online retailer supported by Walmart to better compete with online rivals such as Meesho and Amazon, which dominate the value categories. Revised rates came into force last week.
“The new structure will encourage the seller to reduce the sales price of their products on the platform, thus increasing sales. Finally, myntra wants to be known for its different price points, especially for clothing,” one of the above sellers said. In addition, a new platform will lead to the platform and help to expand products to customers.
Read also:Another 10 -minute India delivery? Home workers on request
Certainly, it is not an approach to the university. Revised rates are specific to sellers and categories, which means that commission rates may vary depending on the holder, performance and product category. For example, long -term retailers can operate under different boards compared to newly on -board traders.
This development comes only months after mynra reported profitability in FY24, which for £782 loss of crore in the previous year. This step suggests a wider attempt to expand the market revenue by joining the cost -effective, high -volume consumer segments, especially in Level 2 and Level 3 markets.
Myntras’s monthly “end of the reason”, which ended on June 12, recorded 60% of all orders from Tier 2 like Jalandhar, Guwahati, Bhubaneshware and Mysur.
Myntra did not respond immediately to the e -mail queries bymint.
Consumers have reduced purchases
Fashion and clothing industry has witnessed slowing in the last few quarters, while consumers have been doing less discretional purchases due to slower income growth. According to the Indian Association of Retailers Indian retail sector, in December 2024, nominal sales growth recorded 5%-important month of the festival-which joined the previous period.
“Certainly it could be a clear step to compete with players like Meesho, and a bunch of fast fashion store players. It’s a completely different category-at least expensive fashion, it usually focuses on the Z G-Gen,” said Madhav Kasturia, founder and CEO of Zippee.
Read also: Myntra gets off India and sells clothes in Singapore
Kasturia said that the acquisition of the seller is not a problem – it is about using early customers and building future loyalty.
“This game could strengthen the presence of myntra on the Tier 2/3 markets, where the increasingly important consumer base is increasingly important,” Kasturia added.
Analysts say that myntra will still go after the bonus and users of the mass premie.
This does not necessarily mean a shift in positioning. There is still a sufficient market share – no real pressure to reconsider fixed fees, even in fast and social trade, the casturia added.
Prize
“At Face Value, The Move Resembles and Direct Response to Meesho, Whose Growth Has Been Underpinned by A Zero-Como-Commission, Low-Aov (Average ORDER VALUE) Filters the Approach Through the Lens of Category Specificity, Price Segmentation and Marketplace Control.
Varma added that the introduction of price games where it is important while retaining the strength to discover, brand loyalty and after sale after sale seems to be a parallel smart move.
“There Must Be, undeniibly, and Potential ‘Tension’ Between myntra’s Traditional Brand Positioning-Uurban, Aspirational, Style-Focused –and This Aggressive Push into Low-Ticket Commerce. But Rather Than and Departure Platform Think of It AS A Pyramid: High-Frequency, Low-Margin Products Draw Mass Traffic at the Base, While Curated Labels, Premium Brands, and ‘Higher category’ anchor the top, “said Varma.
Analysts say this kind of graded strategy is not new. Amazon and Flipkart have a long -term balanced volume and value and offer affordable entry points while growing premium verticals such as Amazon Lux and Flipkart’s Private Etipal. It seems that myntra accepts a similar approach: to draw a high volume shoppers and sellers on the base, then using data based on data and personalized recommendations to promote them to higher end offers.
This model protects the premium segment rather than dilute its sophisticated segmentation, not exclusion. Expansion to the categories of lower tickets is a natural development, especially in the post-pandemic landscape, where the consumption of costs of costs increased between ascending mobile consumers.
New mantra
“E-commerce works best when small profits are achieved on a large number of transactions. By this movement, myntra clearly bet that the decrease in the commission will attract much more retailers, increase the number of products and increases order volumes. £30.9 crore after steep loss £782 Crore a year ago, it shows that this kind of strategy focused on scales can start to pay off, ”said Varma.
However, analysts believe that the commission rate 0-1% is unlikely to be a long-term universal model.
Read also:Myntra to bring Abercrombie & Fitch, Hollister Stores to India in the franchise agreement
Instead, it acts as a lever of market stimulation-it was thinking of bringing a competitive seller who could otherwise download to Mees or Shope platforms. “It is a step towards balancing the supply equation, especially in categories with high friction, such as accessories, fast fashion or basic clothing-they eat the seller and discourage the margin,” Varma added.
In addition, platforms such as myntra are increasing from the rapid rise of fast trading and social trading models that have redefined the expectations of consumers around speed, price and availability.
“However, the myntra’s reaction was measured and strategic, not reactionaries,” Varma said, adding that, unlike food or impulses categories, fashion requires a mixture of speed and brand.
Myntra has already begun to pilot express delivery services such as “MNOW” with 30 -minute or 4 -hour time axes in selected cities. To optimize performance, myntra uses its network of brand partners and dark stores. To optimize performance, myntra uses its network of brand partners and dark stores.
(Tagstotranslate) myntra
