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The fourth edition of Myntra’s End of Reason Sale (EORS), a strategy introduced by the fashion e-tailer in January 2014 to steal a march on traditional retailers, seems to have paid off.
The fashion e-tailer exceeded its target of achieving 20x the daily sales target, with actual performance at 23x.
The two-day (July 2 and 3), heavily discounted sales format offering discounts ranging 30-80 per cent was an attempt by the e-tailer to attract offline shoppers who wait for End of Season sales which typically stretch 6-8 weeks.
The rationale behind the sale, according to a source in Myntra who is closely associated with the new format, is to “sell out-of-season wear in two days flat, along with some current fashions, to be able to launch the new season’s collection much ahead of brick-and-mortar retailers, at full price.”
The source, who wanted to remain anonymous, said this is to address the challenge fashion retailers face the world over — of being able to sell just 50 per cent of their merchandise at full price, while the rest is sold at discounted rates ranging 20-70 per cent. “The average discount offered to shoppers this time was 60 per cent.”
Myntra concluded the sales with over 3 million products ordered by discount-happy shoppers, attracting an unprecedented 37 million visits and a high 30-per cent share of first-time buyers. The company claims to have processed about 7,000 orders per minute at peak during the two-day sale.
Ananth Narayanan, CEO, Myntra, who joined the delivery boys to customers’ doorsteps said: “EORS has truly turned out to be the biggest fashion shopping event in the country. We saw an unprecedented 1 million app installations”
CEO deliveries According to a second source within Myntra, the extra spotlight and publicity on ‘CEO deliveries’ this time around, was to overcome the negative comments on not being able to deliver last year.
“Last time, the two-day sale was cut short to one day, as the demand was too high to service, deliveries got delayed and orders were cancelled. Even this time, deliveries will happen over the next 7-10 days.”
In January, Narayanan pushed the timelines to achieve $1 billion in GMV (gross merchandise volume) by one year, to FY2017, a target that was earlier expected to be achieved by FY2015.
On whether EORS would contribute to propel Myntra to reach this goal faster, the first source said: “Online fashion shoppers want big brands.
“As long as Myntra offers the best of brands, EORS will be an important element to the company’s overall growth strategy.”
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