Competitive Analysis of Myntra
Competitive Analysis of Myntra
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“In business, the competition will bite
you if you keep running.
If you stand still, they will swallow you”
- Victor Kiam, CEO of Remington
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Need of Competitive Analysis
● To understand the current standing in the market
● To get early feedback and challenge the status quo
● To get new ideas and identify newer trends
○ Examples:
■ Cameras + phones
■ Energy drink (Beverage + Health & wellness drink)
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Questions to ask yourself
● What does the company stand for?
● What is the business model?
● What are the categories of operations?
● How are the products priced?
● What is the company culture?
● Is the company equipped to handle the competition?
● How are the financials and levers for financial maneuvers?
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Overview: Myntra (Online Fashion Stores)
Company Ethos A Fashion & Lifestyle Company
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Competitors
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Overview - AJIO (Direct)
● AJIO, part of the Reliance Retail ecosystem:
○ The largest retailer in India in terms of revenue and part of the overall Reliance
Industries
○ Vineeth Nair is the CEO of AJIO
● Mission:
○ Celebrating fearlessness and uniqueness, AJIO.com is constantly looking to
bring a fresh, current and accessible perspective to personal style 7
Overview - Meesho (Indirect)
● In June 2019, Meesho became India’s first startup to receive investment from Facebook
● It has raised $190 M till date and has 1 Cr+ resellers on its Platform. Major fundings include
○ August 2019, it raised $125 million in Series D round led by Naspers, with participation
from existing investors SAIF, Sequoia, Shunwei Capital, RPS and Venture Highway.
Facebook and former Vodafone Group CEO Arun Sarin also participated in the round
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Business Model - AJIO
Business Model Examples Pros Risks
Big Brands Puma, Nike etc. ● Strong Brand Pull ● Brand power
Reseller ● Ride on with the dilution
marketing efforts of ● High inventory
the brands risk
Private Labels Jiyaa, MDS, MFT ● Highest margins High inventory risk
Couture etc. ● Assured supply
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Business Model - Meesho
Business Model Examples Pros Risks
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Comparative Analysis: Myntra - AJIO - Meesho
Factors\Companies Myntra AJIO Meesho
Strong financial backing by the parent company, Relatively new market entrant
Reliance Industries
● Unaffected by the FDI rules in ecommerce Needs to setup teams from scratch for enabling
online ecommerce
● Can work with different inventory models
and not affected by the regulations like no
seller to be more than 25% of the business
Strong supply chain and pricing control because Fashion is relatively a large area and need to
of Reliance Retail reach identify the right set of profitable categories
RIL has exclusive master franchisee Needs to build a fashion first approach to
arrangements with international labels including business as opposed to the traditional oil & gas
Diesel, Kate Spade, Steve Madden, Burberry, and telecom businesses
Canali, Emporio Armani, Furla, Jimmy Choo and
Marks & Spencer 12
Strengths and Weaknesses - Meesho vs. Myntra
Strengths Weaknesses
It will be favoured by government because Highly price sensitive target audience and
it is encouraging local entrepreneurship hence need to constantly work to keep
costs low
First mover advantage in an unorganised
market with no major established player
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End Note
● Fashion is $50B+ opportunity in India and online Fashion is still 3-5% of it
○ Majorly online fashion is controlled by Flipkart + Myntra (accounting for about 70%+ of
revenue)
● But the entry of Reliance (AJIO) in the scheme is expected to change the numbers over the
years
○ Reliance Retail is the largest retailer in the country
○ It operates over 11,300 stores pan India with ~26 million square feet of retail space and is
growing rapidly
○ AJIO + Reliance Trends is the central piece of its offline to online story in the Fashion
category
○ Reliance is not affected by the e-commerce FDI guidelines and has a higher control on
pricing, discounting and customer experience
● Players like Meesho will move up the ladder to target more premium buyers because the
margins are higher
● Hence Myntra should focus on keeping a close eye on both direct and indirect competition
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Disclaimer
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