Small towns could account for over 50% of sales in three to four years says Myntra
Flipkart’s fashion arm Myntra expects sales from shoppers in Tier 2 markets and beyond to increase over the coming three to four years to reach over half of its total sales thanks to increasing non-metro demand for branded apparel.
Myntra currently counts around 40% of its e-commerce sales from shoppers in Tier 2 locations or beyond, the Economic Times reported. Sales from more rural locations are especially high during sale events and the business is confident that Tier 2 and beyond sales will continue to rise in the medium term as the demand for international fashion brands and non-essential goods increases outside of India’s metros.
“If you look at the next three- four years, it will definitely be closer to 55%,” said Myntra’s chief executive officer Nandita Sinha, ET Bureau reported. “It will be a journey that we will make and it has nothing to do with a low value or budget. That’s the myth that we are all discovering that is to be busted. Maybe the contraction is in the headroom that we have as e-commerce, because fashion and branded fashion is so under penetrated in this country.”
The business will launch one of its largest sale events of the year on December 10. Expecting to see strong sales from rural locations, Myntra will offer up to 80% numerous branded goods until December 16.
“There is this whole expansion of the fashion cohort, non-metro customers, the Gen Z customer, the millennial customer, the beauty customer,” said Sinha. “The role that the brands expect us to play is to actually leverage the entire ecosystem, bring all of these pieces together, to be able to provide an experience which is great for the customer, but also their ability to tell brand stories.”
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