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Flipkart's trials: Myntra Sales dip 10% in app-only mode

swatkats

The TroubleShooter!
Flipkart's trials: Myntra Sales dip 10% in app-only mode in less than a week!

Myntra.com, India's largest online fashion retailer, has seen a 10% drop in sales since it shut its website and turned a mobile app-only etailer last week. The company, owned by Flipkart, had factored in such a decline and hoped to return to the level of sales prior to the move in the coming weeks, according to a source. Its closest rivals, Snapdeal and Amazon, however, said they had no plans to wind up their websites and focus only on mobile phone users.


Myntra, which reportedly generates more than 90% of its traffic and 70% of its orders from its mobile app, closed down its website last Friday and moved to a mobile-only platform.


Its parent, Flipkart, plans to follow suit within a year. The move is driven by rapid penetration of smartphones in the nooks and corner of the country. Another rationale is that focusing entirely on the mobile app will help the e-commerce player give customers a better shopping experience.


Source: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now - The Economic Times

FK bansals are keeping their brand Safe, Before implementing anything they do trials on other brands and now is the time of myntra, Never seen such people with low life.
 
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Vyom

The Power of x480
Staff member
Admin
First thing which a Company does after buying another company is lower it's market cap. Testing app-only mode for Myntra looks to me a playground for FK apparently.

Why not FK gift a smartphone to everyone who doesn't already have a smartphone first. How can FK close down it's website which made them a brand in the first place, is beyond my understanding.
 

Desmond

Destroy Erase Improve
Staff member
Admin
Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now

Idiots Myntra.

Such a move is only sinister and stupid.

Source: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now - The Economic Times

NEW DELHI: Myntra.com, India's largest online fashion retailer, has seen a 10% drop in sales since it shut its website and turned a mobile app-only etailer last week. The company, owned by Flipkart, had factored in such a decline and hoped to return to the level of sales prior to the move in the coming weeks, according to a source. Its closest rivals, Snapdeal and Amazon, however, said they had no plans to wind up their websites and focus only on mobile phone users.

"Our data shows that there are still many customers who use PCs to shop online. We do not want to force our customers to use one specific medium to shop on Snapdeal," a Snapdeal spokesperson said.

This is the case even as 75% of Snapdeal's orders are placed on mobile phones. Akshay Sahi, customer experience head at Amazon India, too, said, "We believe that as a consumer-obsessed company, we have to enable our customers to shop anytime, anywhere, and anyway they want."

Another major online marketplace, eBay, which generates over 45% of its total traffic through mobile devices, is not willing to bet exclusively on mobile app either. "At eBay, we believe in an inclusive strategy rather than an app-only strategy," said Shivani Suri, head of marketing at eBay India. "With the growth of smartphone penetration and given that the first interface for most of the users is mobile, we consider it as key medium. However, it doesn't mean that we are not going to cater to ..

Myntra, which reportedly generates more than 90% of its traffic and 70% of its orders from its mobile app, closed down its website last Friday and moved to a mobile-only platform.

Its parent, Flipkart, plans to follow suit within a year. The move is driven by rapid penetration of smartphones in the nooks and corner of the country. Another rationale is that focusing entirely on the mobile app will help the e-commerce player give customers a better shopping experience.

According to a recently released report by Goldman Sachs, the e-commerce market will account for 2.5% of India's GDP by 2030, growing 15 times and reaching $300 billion (about Rs 19,200 crore) from $20 billion (about Rs 1,280 crore) at present. The report also stated that India will have the second-largest digital population in the world with one billion users by 2030, powered by online mobile penetration.

India has enough spectrum and telecom infrastructure to provide 3G data coverage to 25-30% of the population, it said. "Further, 3G-enabled smart phones are available for $40 with more than 900 phones launches last year," it said.
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Although a number of recent reports predict a massive surge in smartphone usage in India, which suggests Myntra has made the right decision, several experts told ET that they are not convinced of the soundness of the e-tailer's move. Some industry watchers said that slow internet speed on mobile devices and expensive data plans could play spoilsport. "One could argue that while it is okay to reduce or even stop the investments on PC-web, it could be foolish or even dangerous to discount it as a past that has completely ceased to exist," said e-commerce expert and independent consultant Ratul Ghosh.

Many shoppers who are comfortable with PC may not be keen to shift to app, he said. "What will happen, in my opinion, is that affiliate websites will have a party once they are the only route to the inventory on the PC-web. And we all know that's 5-10% more expensive a sale."
 

GhorMaanas

The Vagrant Seeker
Re: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now

why these e-tailers have begun emphasising so much on apps? myntra ofcourse went overboard!
 

Desmond

Destroy Erase Improve
Staff member
Admin
Re: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now

The purpose is very sinister.

They are systematically trying to reduce competition. When people start using apps, they might not use the web for shopping and thus might try to become the only gateway for shopping.
 

GhorMaanas

The Vagrant Seeker
Re: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now

hmm. as in, no 'distraction' for potential customers towards their competition by way of shopping through an app? these e-tailers are anyway not known for fairplay, but if they change the mode to 'app only', perhaps they are bound to suffer a setback, like myntra; taking the very much price-conscious (Indian) netizens/e-customers for fools.
 

Desmond

Destroy Erase Improve
Staff member
Admin
Re: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now

Damn!

Ok my bad.
 

Flash

Lost in speed
Re: Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now

[MENTION=34930]Zangetsu[/MENTION]'s comment in other thread, made me rofl. :lol:
 

Desmond

Destroy Erase Improve
Staff member
Admin
Have you seen their App-Rap series of videos on youtube?

Such cringe.

Here's an example:



- - - Updated - - -

First thing which a Company does after buying another company is lower it's market cap. Testing app-only mode for Myntra looks to me a playground for FK apparently.

Why not FK gift a smartphone to everyone who doesn't already have a smartphone first. How can FK close down it's website which made them a brand in the first place, is beyond my understanding.

They are trying to thin out the competition.

They are trying to be the only gateway for online shopping. With the app, they hope that people will only use it and not go to the web and their competitors sites.

It is systematic and sinister.
 

Vyom

The Power of x480
Staff member
Admin
They are trying to thin out the competition.

They are trying to be the only gateway for online shopping. With the app, they hope that people will only use it and not go to the web and their competitors sites.

It is systematic and sinister.

Yep. Quoting this from other thread:


Mobiles are the most personal thing that people have today and which they carry everywhere, even toilets.

So a person visiting a site (after registration) probably gives following information to the online retailers:
1. Name, Age, Address, Ph No
2. Your shopping preference from your browsing history
3. Info from cookies
4. Atmost, your location (that too mostly within a range)

For above they have to host and update their website which takes a huge amount of resources.

Now let's see what the online retailers get when we use their app:
1. All of the above
2. Personalized shopping preference (by accessing other apps you have installed and used)
3. More accurate location (thanks to GPS and more accurate Glonass)
4. Ability to constantly push us notifications about "new deals" and "bumper sales" that most people wouldn't be able to resist the temptation to watch
5. Much greater access to us since we carry our phones everywhere (so eventually when we get bore, we will catch that popup notification which will lure us into browsing their products).

And following Bonus advantages:
1. Less Distractions and choice: On PC we can easily search for products on other sites and compare the prices. App means its harder for us now if not impossible. For layman, that means more (or most) time to the specific online retailer only.
2. Less choice: In an app it's harder to see choices about same product. Mostly there's no 'similar items' or choice of selecting same product selling for lower price by another seller. Results in them monopolizing the seller.
3. No review: Mostly on mobile apps, users don't really care about reading long reviews. (Or even app don't provide reviews on mobiles). Thereby a person is more likely not be affected by any negative review. (Although it's double edged, since he would also likely to 'not' buy stuff since a good review is not available to him.) This could be worse if the online retailer decides to sensor bad reviews citing 'smaller real estate to show more reviewes' as the reason.

"Die for" Bonus advantage:
For all these they don't have to "host" anything on any website. The app installed on our mobiles are the front-ends, while they only need to maintain backend (database). So they have effectively eliminated the website designers/testers thereby freeing up a lot of resources.

PS:Btw, Myntra will most prolly gonna fire their website team now. Sad.
 

Faun

Wahahaha~!
Staff member
I force stopped the notification from flipkart app. It was getting annoying to a point where I got frustrated. And there is not an option to stop notification from the app. Neither a filter based on the section for which I can choose the notification to show up.

I feel the experience of browsing stuff on website is much better than the convenience of app.

The emphasis should be on responsive design rather than making access exclusive to app.
 

Flash

Lost in speed
Exactly. There's no option of "comparing" products on mobile apps in WP. I hope, its same in iOS/Android apps too.
Website is the best option in such cases. With the plugins like buyhatke, one can easily compare prices for a product across most shopping websites and buy on their choice.

Mobile apps sucks, on such scenario.
 

REDHOTIRON2004

Journeyman
Re: Flipkart's trials: Myntra Sales dip 10% in app-only mode in less than a week!

I don't actually see much use of a mobile app if you actually have a desktop at home unless you are stuck up at some remote place or have to buy something urgently outside. It's simply not convenient enough or as safe as a desktop.

Secondly, the desktop site and browser have lot more options and functions along with the ability to multitask and see reviews and prices of the same product at the same time.
Thirdly, pictures of products are more clearer and high resolution compared to mobiles low res small screens.
And lastly, it's true that mobile have penetrated to rural areas as well. Where people might not have access to compete desktops. But, did anyone cared to find out how many of that remote population actually buy online?
As far as I can tell. Those people either dont buy internet packs as they are costly or they dont have bank accounts or their region might not be serviceable at all. Or they just use there mobiles for calls as they are not much aware as to how to use there smartphones completely.

According to me, the mobile penetration thing is complete BS. As, those figures have been put there just to show better numbers. The majority or bulk of online purchase still happens from people in urban or semi urban areas where internet access with broadband have already penetrated. I doubt that any remote area where only 2G or 3G is present would have a sizable online customer presence.
 

GhorMaanas

The Vagrant Seeker
yes, there could be exceptions, but assuming that people from rural or/and remote areas too purchase online would be like the height of assumption! also, already these e-tailers and courier-agencies find it tough to deliver the products without any issues in just tier 2/3 cities, then what to talk about small towns and villages.

also, i don't think there would be many in urban areas who would simply browse an e-tailer's app for products, select one, and just place the order and be done with it. most of us compare the prices of what we want to buy on different portals, use add-ons as well to check the lowest prices, look for offers, etc. these take browsing on websites. that's why i wrote earlier that these e-tailers perhaps take us for fools thinking that when we've an itch to buy something we will just log on to their apps and simply place the order before/without doing any searching on various sites, in case their sole intention to push for more app-usage is to restrict the consumers to just their portal(s) alone.
 

ico

Super Moderator
Staff member
10% drop is too less.

Moving to app-only model has been justified.

Sad for the customers.

I wonder who are these people buying from apps. I dunno anybody who purchases from apps.
 

Ronnie11

Judgement Time!!
I am a bit too late on this but can't a ecommerce company not run an app and a site simultaneously?Is it too much of a drain of resources. Why does one need to cease for the other to exist.This was a bit baffling when i heard.

I know a lot of people who have stopped using myntra because its not on the website. Many have moved to sites like jabong/amazon etc. But I am surprised its just a 10% drop. Not a lot really.
 
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