Myntra is the best and most famous online retail brand offering various fashion products including accessories for men, children, and women. It also offers beauty and home decor products as well. Lets now see the SWOT Analysis of Myntra in detail.
About Myntra
Myntra was established in 2007 and was initially a leading platform for customized gift items. Then the company converted into an online retail model with having sharp focus on fashion.
In 2014, Myntra was acquired by Flipkart which helped Myntra leverage its supply chain and increase its loyal customer base.
Let us now look into the SWOT analysis of the company including its financials, strategies, and much more.
Myntra at a Glance
| Founders | Mukesh Bansal
Vineet Saxena Ashutosh Lawania |
| Year of Establishment | 2007 |
| Annual Revenue (as of FY24) | Rs 4,375 crore |
| Origin | Bengaluru, Karnataka, India |
| Type of Company | Private |
| Total no. of employees | 1,001-5,000 employees |
SWOT Analysis of Myntra
SWOT analysis is a very valuable tool that helps an organization to understand its drawbacks, plus points, weaknesses, and threats.
Let us now see all the four factors of Myntra through this SWOT analysis.
Strengths of Myntra
Strengths of Myntra include the following –
Sturdy brand position
Myntra is India’s most popular online fashion retail brand and has a great competitive advantage. This guarantees that the business has a foundation of devoted customers.
Different product portfolio
Myntra offers a different range of fashion products including beauty, footwear, accessories, clothing, and much more. The company has a wide collection of all its products that caters to a diversified audience base be it from budget buyers or high-price product seekers.
Strategic collaborations
Myntra has different exclusive partnerships as well as collaborations with local as well as global brands and designers. They also have established premium collections with celebrities which makes the company unique and appealing to customers.
Strong technology & user experience
Myntra is very popular for its beautiful user interface including visual search capabilities, customized recommendations, and AR-based features. The company invests heavily in the latest technology like AR and has come up with brilliant features like virtual trial rooms.
Effective supply chain management
With its strategically located warehouses and strong logistics network Myntra makes sure that their orders are on time. Also, it makes effective order processing and improves customer satisfaction.
Excellent loyalty program & discounts
The loyalty program assists the company in retaining potential customers by offering various benefits like special offers, bonus points, etc. Also, the company launches mega events like the ‘End of Reason Sales’ that drive major traffic and sales.
Prompt customer service
The company invests heavily in making sure that its customers are getting satisfactory post-purchase experience. This experience involves quality assurance, detailed customer support, and easy returns.
Great financial stability
Myntra is backed by Flipkart which gives it a higher financial stability as well as access to a wider customer base. The company also acquired a platform that consolidated its market position and reduced competition.
Weaknesses of Myntra
The weaknesses of Myntra that the company should be focused on –
Dependency on discounts
Myntra is available depending upon discounts and sales to get more traffic and volume. This can affect the profit margins and may increase customer expectations regarding discounts and sales.
Greater return rates
The fashion eCommerce platform usually gives higher rates when compared to the other sectors. It can be anything related to size issues or any difference in the actual product. It may also include customer dissatisfaction.
Challenges with in-house brands
In-house brands can be a strength but due to enhanced margins maintaining brand reputation becomes also a big challenge full stop it is especially when external brands are more recognised.
Reliance on the Indian market
The primary focus of Myntra is on the Indian market which offers a big market penetration. It also shows vulnerability to economic or regulatory shifts in the country.
Supply chain issues
Even though Myntra has a very well-established supply chain some factors including internal ineffective operations or pandemics can pose a weakness for the company.
Opportunities for Myntra
The opportunities for the company include –
Expansion into cities & globe
The 2 & 3-tier cities can expect the expansion of Myntra as the internet is growing in the smaller cities and towns. There is a huge market for Myntra to expand its footprints.
Also, Myntra has primarily focused on the Indian market but there is a huge potential for the company to explore the neighboring countries as well where the online fashion segment is developing.
Diversified portfolio
The company can expand product categories and will include sustainable fashion, luxury fashion, active ethnic wear, and much more. This will increase sales and income for the business.
Advanced tech-upgradation
With the latest technology like AR, VR, AI, and more, Myntra can make the shopping experience more engaging. It can also develop personalized shopping assistants as well as more advanced techniques for the customers to shop.
Omni channel retailing
Discovering offline presence with the help of experience centers, outlets, or pop-up stores may give a hybrid shopping experience to customers. It will offer both online and offline shopping experience benefits to them.
Supply chain & personalized shopping optimization
Investing in advanced technology is to optimize supply chains that may give quick deliveries, minimal operational cost, and advanced inventory management. Also, the company can leverage AI and data analytics to personalize the shopping experience.
Threats to Myntra
Severe competition
The online fashion retail market is truly competitive in India where top players like Ajio, and Amazon among others give a cutthroat competition. Since they serve the same customer base, the new entry players also increase the competition to a greater extent.
Regulatory & Economic issues
Changing regulations about e-commerce in India may affect the company’s operations and profitability. The regulations may include discounting or related to foreign direct investment.
Some uncertain situations like economic downturns, reduced consumer spending or any disturbance in the economy of the country can impact the revenue and sales of the company.
Brand image and digital security risk
Any kind of negative publicity due to product quality shoes or other controversies including customer service complaints may badly affect the brand image. Also, digital security threats like cyber security breaches hamper the trust of the users while tarnishing the brand’s reputation.
Top Competitors of Myntra
Here are the top 5 competitors of Myntra –
- Flipkart: Flipkart offers a wide range of products including electronics, home goods, fashion, and much more. Even though it is a parent company it competes with Myntra in the fashion space.
- Amazon India: It is also a major competitor of Myntra and is instrumental in offering a white range of products like style and fashion items as well.
- Ajio: Ajio competes directly with Myntra in the areas of footwear, accessories, and clothing.
- Tata Cliq: It is also the leading eCommerce platform offering different types of fashion and lifestyle products and focuses more on luxury and quality brands.
- Snapdeal: This is another major competitor of Myntra in India with a broad range of products, lifestyle and fashion products. In terms of pricing and product types, it commits directly to Myntra.
Conclusion
Finally, Myntra’s SWOT analysis talks about its strengths including strategic collaborations white product ranges, and strong brand position. The weaknesses of the company include dependency on discounts and severe competition from the parent company Flipkart.
Opportunities like expansion in the different markets and cities also include. Moreover, threats including intense competition and supply chain disturbance are on the top.
Janardan Das is a seasoned Growth Lead with over five years of experience in digital marketing. He specializes in crafting effective marketing strategies, including SWOT analysis and digital marketing courses, to help businesses thrive in the competitive landscape. He is passionate about sharing his knowledge and insights, empowering others to succeed in their marketing endeavors.