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Fashion e-commerce player Myntra’s strategy to expand its footprint into tier-2 and tier-3 markets is paying off during the Covid-19 lockdown. Amar Nagaram, CEO, Myntra, told BusinessLine that the demand from these markets is picking up because consumers there have unrestricted access to premium brands and styles through the online platform. Prior to the lockdown, customers in these geographies travelled to the nearest tier-1 or metro city to buy premium products.
With travel restrictions in place during the lockdown, customers are shifting to online shopping. Myntra had expanded its footprint by adding 4,000 new pincodes this year, most of them in untapped geographies in tier 2 and 3 markets. “Though the purchase cart value will be lower than a repeat customer, we’re bullish about the retention of the new customers coming to the platform,” Nagaram said.
New normal
The fashion e-commerce player recently launched the 12th edition of its flagship ‘End of Reason Sale’ (EORS) and acquired a record high 2.5 lakh new customers on day 1.
A recent report on consumer sentiment by BCG Consulting stated that the current situation has triggered a significant push towards the adoption of digital modes. “Many consumers are trying out digital in shopping/payments/media for the first time. There have been 20 per cent additional users reading the news online; 40 per cent new users shopping staples online; and 20 per cent new users using digital wallets.”
Ever since the lockdown was eased up, in existing markets, the Flipkart-owned player saw the demand for ‘work from home’ essentials and work casuals. In newer markets, the demand was for casual t-shirts and kurtas . “We have also seen a demand in grooming, and beauty essentials for both men and women,” Nagaram said. He added that EORS is unique because it was completely planned and organised by all its employees working from home.
The only challenge that remains for the company is last-mile delivery, because of the situationon ground in different parts of the country, said Nagaram. However, the company is bullish that it can overcome these headwinds with its wide network.
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