India’s Myntra to launch marketplace

Indian fashion online store Myntra plans to launch a marketplace this year to compete with the likes of Flipkart and Amazon.

Marketplace format is a type of e-commerce site where product and inventory information is provided by multiple third parties, but transactions are processed by the marketplace operator. It aggregates products from a wide array of providers, selection is wider, availability is higher and prices are more competitive.

The format enables companies to save on inventory related costs and provides them access to foreign direct investment (FDI), which is banned in direct online retail.

“Long term, it’ll be a hybrid model that will evolve for online firms,” said Myntra CEO Mukesh Bansal.

Myntra expects revenue to double this year, gaining from the exit of several online retailers.

“If you look at the past 12 months, a lot of companies such as 99labels.com have decreased in size. We’re taking full advantage of that. Our repeat customers are also spending more so our revenue per customer will increase significantly,” Bansal said.

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