Flipkart & myntra Synergy.

1. Presented By: ANKIT KUMAR GUPTA

2. Facts
• 100% Acquisition by Flipkart
• Rs.2,000 Crore Valuation of Myntra
• Deal took place on 21 May, 2014
• Largest Ecommerce Deal in Indian History
• Myntra’s Founder will join Flipkart’s Board

4. Myntra + Flipkart
• Flipkart’s Reason
 Wanted apparel products specialization, deeper understanding
of fashion, aesthetic presentation and experience.
 Fashion products to become the most popular category in the
near future.
• Myntra’s Reason
 To have a stronger distribution network.
 To foray into the mobile platform
 To increase warehouse capacity by 4 times

5. • Myntra has started offering 30-40% discount after the infusion.
• Simple Strategy – Combine to two entities -> get a market
share a 50% -> keeping the functionality separate, take it to
60%
Myntra Flipkart
No. of registered users 8million 18million
No. of products on stock 60,000 10 million books
Annualized revenues 1,200crores(approx.) 3,355crores(approx.)
Myntra attained 45% of market share in fashion lines.
The combination added 600 brands making effective sales 1.5billionUSD

6. FLIPKART – MYNTRA
THE GAME CHANGER
 Flipkart and Myntra together create the largest e-commerce stories and
together will dominate the market.
online fashion market share Myntra 30% & Flipkart 20% at present.
Become leaders in the category of Fashion.
Flipkarts earned 4-5% by electronics & phones category, F&A will generate
double digit margins.
65% market share - online fashion segment
by December 2015.

7. Myntra
30%
Flipkart
20%
Others
50%
Market Share
Myntra
Flipcart
Others
65%
35%
Market Share
Flipkart+Myntra Other's

8. FILTER
CRITERIA
MARKET SEGMENT
FLIPKART
Electronics,
books
MYNTRA
Apparel
(>50%)
Deal was an
added vertical to
the line of
business
Apparel business
expected to grow from
3 billion to 50 billion
hence a prospective
sector of business
SYNERGY
Cost optimization – by
using common resources
as they have common
vendors
Operational synergy – by
increasing market share
and becoming more
dominant
Increasing sales – through
cross selling, up selling i.e.
selling apparel higher
profit margin
Flipkart merger – a growth merger for
Myntra
Launch of first online personalized style
service, more brands under private
labels and foraying into premium
designer collection

9. -> Myntra to adopt Flipkart‘s Operational model
- Marketplace Model in order to overcome:
• No need for Warehousing
• No shipping Costs
• Increased Profit Margins
• Expand its reach to new customer.

10. -> The biggest Competitor – Snapdeal,
which is backed by ebay.
-> Discourages the growth pace of Jabong.
-> Walmart’s entry into the indian e -market is imminent.
-> It squares off against “Amazon”
for dominance of India's
fast-growing online retail market.