Myntra, online fashion retailer in India, decided to become only a mobile app-based retailer. This will be the first such instance of an e-commerce player transforming into a mobile-only entity as internet usage over smartphones surges in India.
Flipkart, which acquired Myntra a year ago, may also follow suit if the experiment goes down well with the fashion e-tailer.
Currently, Myntra draws as much as 80% of its traffic and 70% of sales from its mobile app. Flipkart, too, registers more than 60% of sales through its app.
Both Flipkart and Myntra have already closed down their mobile websites directing visitors to their respective apps. There is a 360-degree advertising and marketing campaign being planned by Myntra to announce its app-only presence which will be unveiled in the coming weeks.
Online shopper penetration (as a percentage of internet users) in India is expected to increase from 9% in 2013 to 36% in 2020, primarily led by mobile users. With mobile usage increasing, advertisement costs (primarily search engine optimization) are declining as traffic is increasing either directly to the website or through a mobile app.
Some other e-commerce majors too, have been pushing offers exclusively on their apps with the aim of getting consumers on to the platform. Most leading Indian e-commerce players have seen mobile contribute to greater than 50-60% of transactions today from under 5% a year ago as smartphone penetration has risen exponentially.