Flipkart shifts its focus on Myntra by shutting down Jabong

March 16, 2020 written by

Walmart owned Flipkart has now formally closed all the operations of Jabong to shift its entire focus on fashion e-platform Myntra. As of now, Jabong’s online portal and app are being redirected to Myntra’s shopping website.

According to experts, this move will help Flipkart consolidate operations and make its marketing budget efficient. Devangshu Dutta, Founder of Third Eyesight, a strategy consulting firm said, “The way e-commerce market in India has developed, customers need to be reacquired consciously. Since the level of stickiness is low, it is better to bring customers to one site than spread money across multiple sites. Given how Walmart’s focus as business is fairly cost and efficiency conscious, it makes sense to consolidate operations.”

The company has still not disclosed any statement regarding the matter however, in July 2019, Flipkart had said that it had begun to cut a bilk of its marketing expenditure on Jabong and redirecting users towards Myntra by offering incentives.

According to a data from McKinsey’s Fashion Scope, the Indian clothing market will be worth $59.3 billion in 2022, making it the sixth largest globally, comparable to the United Kingdom and Germany.

As per the data from SimilarWeb, app downloads of Jabong in India had dropped by 12.71 per cent in December from November in 2019. Usage on the app had been steadily declining as well. Daily active users on Jabong were down by 10.61 per cent in the same period whereas Myntra app saw a 41.1 pert cent rise in downloads and daily active users count was upto 31.87 per cent.

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