Flipkart closes down Jabong operations, redirects to Myntra

By

Isabelle Crossley

Published
Feb 5, 2020

E-commerce platform Flipkart has closed down its online fashion platform Jabong to after acquiring it four years ago. The business plans to focus on its main fashion platform Myntra where Jabong’s site and app will redirect to.

 
Following a decline in engagement on Jabong and Flipkart’s increased focus on Myntra, the e-commerce giant has decided to shut down Jabong, ET Bureau reported. The move will streamline operations for Flipkart and cut down on marketing costs as the business will promote only Myntra instead of Myntra and Jabong. 
 
Flipkart had started to redirect Jabong users to Myntra through its marketing in July last year and also cut expenditure on marketing for Jabong. Flipkart’s US-based parent company Walmart reported a non-cash impairment charge of $290 million (Rs 1,929.2 crore) due to its investment in Jabong.

Jabong has seen reduced customer interest over the past year. App downloads decreased by 12.71% and active users also dropped in December 2019, according to data from web analytics business SimilarWeb, sourced by ET Bureau. 
 
Myntra saw a significant increase in both active users and downloads during the same time period. In this way, Flipkart is jettisoning one struggling platform which should in turn bolster its premium one.