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India’s Flipkart shuts down Jabong

Indian fashion and lifestyle e-commerce portal Jabong has been closed down by current owners Flipkart.

Flipkart purchased the platform four years ago, but during recent months has seen downloads of the app steadily declining while those for the firm’s premium fashion Myntra have been improving. Flipkart has subsequently made the decision to shutter the struggling Jabong service and redirect traffic towards Myntra.

“The way [the] e-commerce market in India has developed, customers need to be reacquired consciously,” said strategy consulting firm Third Eyesight founder Devangshu Dutta. 

“Since the level of stickiness is low, it is better to bring consumers to one site than spread money across multiple sites. Given how Walmart’s focus as a business is fairly cost and efficiency conscious, it makes sense to consolidate operations.”

An Economic Times article dated July last year reported Flipkart as already cutting marketing expenditure on Jabong and redirecting users towards Myntra.

The Indian clothing market is expected to be worth $59.3 billion by 2022.

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