“Brands sold out most of their inventory than expected due to latent demand earlier this season. We asked the brands to come up special merchandising units for EORS with festive designs incorporated into lounge and active wear. This cuts down cost and they are able to give sharp pricing and reach the relevant consumer with least investment unlike before. More than discounts and clearing old inventory, the pricing of new winter season merchandise itself will be attractive this time,” said Amar Nagaram, chief executive of Myntra.
With limited socialising amid the pandemic, comfort winter clothing such as sweatshirts, active wear and above-the-keyboard-dressing essentials such as beauty, jewellery and watches have gained traction this quarter, the company said. About 50 new brands such as Decathlon, Smashbox, Glamglow and Pothys have been added to the list of 3000 participating partners to suit the new needs of customers amid the pandemic.
EORS, scheduled to take place from December 20-24, expects 40 million visitors over the five day sale period with a demand uptick at 4X over business as usual (BAU) and 1.5X over the last winter edition. About 50% of the contribution is expected to come from Tier 2-3 markets.
“We plan to acquire one million new customers from EORS. Earlier, Tier 2 and 3 markets would open up during the spike in times of events and then would go silent. But this year, these markets have been steadily growing for us. Unlike 9000 orders per minute last year, we have technology to take 20,000 orders per minute as we expect more conversions this year,” said Nagaram.
During EORS in June, Myntra had noted 86% increase in the number of customers from tier 2 and 3 cities – the highest so far – indicating a shift in consumer behavior and preference for online shopping amid the lockdown. It was the first online sale post Covid-19 lockdown that was being looked upon by brands to bring the first wave of normalcy and to win back shoppers.
Nagaram added that fashion as an industry has bounced back to pre Covid level as it gives feel-good factor at a low price point than any big ticket size item such as travel in pre-Covid times.
Apart from increasing the fleet of delivery agents with 20,000 kirana partners on board, the platform has roped in 1600 brick-and-mortar stores from about 200 brands to serve as fulfillment centers.
Riding on the sustainability wave, one-third of the EORS orders will be delivered in paper bag packaging in place of plastic and about 50% of the orders will be shipped from solar power-enabled fullfilment centres in Bhiwandi and Bilaspur. The marketplace expects to ship 1.5 crore items by the first week of New Year.
Flipkart and Myntra together control about 70% of the online market share in the country. Myntra sells over 3000 fashion and lifestyle brands such as Wrangler, Arrow, Diesel and H&M on its marketplace. About two-thirds of its revenue comes from apparel, its single biggest category, followed by footwear, accessories, kids and personal care. With sudden shift to online fashion amid the pandemic, fashion brands have also been prioritising their investment into ecommerce channels this year.