Myntra was established by Mukesh Bansal, Ashutosh Lawania and
Vineet Saxena in February 2007.
Myntra’s headquarter is in Bangalore, with regional offices in New
Delhi, Mumbai and Chennai.
It began its operations in the B2B (business to business) segment
with the personalization of gifts, which included :- T-shirts, mugs
In 2010, the company shifted its strategy to becoming a B2C
(business to customer) oriented firm, expanding its catalogue to
fashion and lifestyle products.
Myntra.com is ranked among the top 10 e-commerce companies in
In the last 3 years, Myntra has become the most popular
destination for personalized products in the country.
Started: February 2007
Milestone 1: In October 2007 Myntra received a seed funding
from Accel Partners (formerly Erasmic Venture Fund), Sasha
Mirchandani from Mumbai Angels and another angel investor.
Milestone 2: In 2008 they touched 1000 daily visitors mark.
Milestone 3: In 2009 they touched 4000 daily visitors mark and
were awarded “Pride of India 2009 2010” award for
exceptional business growth by IDG Ventures.
Milestone 4: In 2010 Myntra was the Red Herring Global 100
Milestone 5: By 2012 February Myntra was shipping 10,000
products every day.
Vision: To become India’s largest online lifestyle products
The Journey of
Myntra has tied up with top fashion and lifestyle brands in
India, such as Nike, Reebok, Puma, Adidas, Asics, Lee, Lotto,
Decathlon, FIFA, John Miller, Indigo Nation etc. to offer a
wide range of current season merchandise from these
Myntra currently offers products from more than 200 Indian
and international brands. These include shoes for running,
tennis, football, basketball and fitness, along with casual
footwear from world-renowned industry leaders like
There are also casual and dressy footwear for women from
Catwalk, Carlton London and Red Tape to name a few.
Myntra undoubtedly enjoyed the first mover
advantage in the online retailing business. But
Myntra’s success has been replicated by other
companies that have now become competitors for
Myntra. Some of them are
Threat of New Competition:
In the Online Retailing industry Myntra has already established
thelargest market share. But since the barriers to entry/exit
and setup capital and working capital arelow in this industry,
threat of a new entrant becomes high.
Threat of substitute services:
Online retailing can be considered to be a substitute to the
usual shop retailing. Myntra cannot provide the customer with
a real retailing experience but at the same time gives the
convenience of shopping from home/office. Currently
there does not appear any other substitute service. Thus this
threat is low.
Porter’s Five Forces Model
Bargaining Power of Customers:
The bargaining power of customers is also described as the market of
outputs: the ability of customers to put the firm under pressure, which also
affects the customer's sensitivity to price changes. Customers can very easily
switch to some other online retailer; this puts pressure on the company to
continuously improvise on their service so as to keep their users satisfied.
Therefore bargaining power of customers is high.
Bargaining Power of Suppliers:
The suppliers in this case are the various brands whose products are being
sold by the company. They can demand an increase in their profit margin and
put pressure on the company. The supplier may choose a competitor of the
firm to do business since the supplier switching costs are low. Therefore the
bargaining power of suppliers is high and Myntra needs to have good supplier
Intensity of competitive rivalry:
For most industries, the intensity of competitive rivalry is the major
determinant of the competitiveness of the industry. In this particular case the
current rivalry, rather competition is not very high, but in future it will be
o Awarded 'Fashion eRetailer of the Year 2013' by
Franchise India – Indian eRetail Awards
o Awarded 'Best E-commerce Website for 2012' by
IAMAI – India Digital Awards
o Awarded 'Images Most Admired Retailer of the
Year: Non–Store Retail' for 2012 by Images Group
o Awarded 'Best E-commerce Partner of the year
2011-12' by Puma India
It has launched a new marketing campaign and highlighting the
product offerings like cash on delivery, free home delivery and
a 30 day return policy.
It has been pursuing aggressive strategies to sustain and
expand its customer base in a competitive environment, right
from altering its core product portfolio to launching innovative
It has also launched a new tech application called the virtual
trial room. Through this application, customers can view
themselves in their desired apparel via an interactive web cam
Company’s Marketing Strategy
It also has planned tie ups with celebrities through with
movies and events as they represent fashion sense and it is a
marketing strategy that they will employ more often in the
Myntra has successfully used social networking websites
Facebook and Twitter to expand its customer base.
Myntra positions itself as a fashionable new age brand. It
launches major marketing campaigns every year. In February
2012, Myntra rolled out an OOH (out of home) campaign
across 2 cities to build brand awareness and promote online
Myntra has used mostly viral marketing and internet for its
popularity coupled with occasional discounts and referral
discounts. It can be given a rating of 3/5.
Competitive advantage in any e-commerce business
can be due to a cost leadership or product
differentiation or both.
In the case of Myntra the competitive advantage is
mostly due to cost leadership
In special cases it also enjoys competitive advantage
due to product differentiation. In case of IPL t- shirts
the buyer can get his/her name imprinted on it.
Also Myntra’s business model up till 2009 was of
customized T-Shirts and mugs etc which allowed it to
have product differentiation
Merger with FLIPKART has increased its strength and
Retention of its independence even after merger.
Offering of more than 1.5 lakhs products with over 1000
Efficient supply chain and delivery capability helps it to
cater to 90,000+ locations.
”End of season sale” –a huge success, Rs.90
crore worth of goods sold
Good advertising and marketing campaigns on TV, internet
Small business units
Intense competition means limited market
Selling private labels can increase their margin
Partnership with celebrity designers, bollywood
movies can increase its fashion appeal.
Bridal collection to tap the big wedding market in
Expansion into global markets can boost business
Global competitors like Amazon slowly making its
Fashion segment is becoming popular leading to
Economic fluctuations and unfavorable govt
Adding to its niche proposition is its app only
business decision and closing website might
prevent it from capturing the growing online space.
Rising cost of raw materials
Increasing rates of interest and tax changes