Unity of Myntra and Jabong scares the competitors in the E-commerce market
Jabong’s acquisition by Myntra offers a threat to other E-retailers as they believe the synergies of the two will have them dominate the online marketplace
After Flipkart’s Myntra had acquired the GFG’s Jabong, a wave of nervousness has hit the online marketplace. The competitors are scaring that the synergies of both of them together will add to the power of dominance of Flipkart, where it now has a control over 70% of the industry.
Myntra and Jabong are the nation’s two big online fashion portals and additionally some retailers use Flipkart to send their products. With two of them together, they will hold around 60-70 % of online apparel market and Flipkart will enjoy more than 75% for the India’s aggregate online fashion market.
According to a person who commented on the terms of anonymity “The main reason to worry is that now group will ask for more convenient conditions like more margins that would certainly effect the other brands”.
Numerous brands, including Tommy Hilfiger, Wrangler, Puma, Vero Moda, Benetton, Adidas, Biba, Levi’s, W and Faballey, offer their items on both Myntra and Jabong. Brand proprietors say Indian ecommerce organizations are under weight to turn productive and of late they have been cutting on their heavy discount offers even with requesting more edges from brands that offer on such commercial centers. So as to make their business suitable they need to arm-turn brands into giving more edges and then again raise the costs for the customers.
Myntra has said that it is planning to turn productive one year from now when the Bengaluru-based online retailer is peering toward $1billion in sales. However, according to spokesperson of Myntra, they are not aiming at margins, but are looking forward to the development. Myntra’s objective is to maximize sales. This will be less demanding now than before and will advantage the brands”.
CEO of a Global Fashion House that offers different brands said the Jabong acquisition has both advantages and disadvantages.
A few organizations said the improvement will affect marks that have high dependence on online deals.
Difference in opinion is the common culture for any development that takes place, but one thing that is for sure is the Myntra-Jabong unity will have a pressure on online players to perform better.