The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Tamas Oberoi, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Flipkart-owned online fashion marketplace Myntra is diversifying into home furnishing, precious and non-precious jewelry and personal care segments in an attempt to widen its consumer base and shore up profits.
The company has set a target to be profitable till 2017 and expects a 500 cr from home furnishing segment in the next two years.
The company has tied up with 40 brands for the home furnishing segment, and will enter the personal care products space and jewelry segments by July.
The estimated size of the domestic jewellery and billion market in India is between $30 billion and $40 billion, respectively, and online sales of fashion and fine jewelry combined stood at $150 million in 2015.
But with Reliance and Aditya Birla already in the competition,the margin in home furnishing might be tight. Myntra’s main focus should be on jewelry and furniture because they are high value items and earn big returns which might help i tin achieving profitability by 2017