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Time of India
a day ago
- Business
- Time of India
Myntra's entry to quick commerce in Delhi-NCR and Mumbai hold key considerations
Live Events Amidst critical operational challenges in the quick commerce sector related to hiring and retaining delivery partners, ecommerce major Myntra has rolled out its 30-minute delivery service M-Now in Delhi NCR and piloted M-Now in Bengaluru in December last year, initially with about 10,000 stock-keeping units (SKUs). ET had reported on December 4 that the online fashion company plans to take the service to Mumbai, New Delhi and Pune in the coming chief executive Nandita Sinha, had told ET in an interview that the fashion etailer had identified significant demand from fashion-first and trend-focused premium customers for quick deliveries, adding that customers are looking for access to their preferred brands with speedy M-Now, customers can find collections from nearly 600 brands, including Vero Moda, Mango, Calvin Klein, Tommy Hilfiger, Levi's, Dyson, YSL, Prada, Carolina Herrera, Huda Beauty, the company said.M-Now's presence in Delhi-NCR makes it pivotal in joining the quick commerce race, and offering multiple brands in one click. In April, data sourced by ET revealed that Myntra is seeing sharp growth in vacation-related shopping. Summer-ready styles in apparel and footwear—such as sundresses, skirts, shorts, cotton shirts, swimwear, flip flops and sandals—are seeing strong said demand for these categories rose around 2.2 times year-on-year in March and April compared to the beginning of the year. Popular brands in this space include H&M, MANGO, Puma, Crocs, US Polo, Tommy Hilfiger, Adidas, Trendyol and Levi' products readily available with convenient return options are likely to spur demand on quick commerce platforms like M-Now, Myntra's M-Express has already been popular with customers, delivering orders in one to two business expanding to Delhi-NCR and Mumbai region would open opportunities to tap urban consumers looking for quick FY24, Myntra posted a net profit of Rs 30.9 crore against revenue of Rs 5,173.7 commerce now accounts for 20% of India's ecommerce market and is growing at a rate of 50% annually, Walmart International chief executive Kathryn McLay said in May Walmart-backed Flipkart's Q-comm entity Flipkart Minutes, is targeting 800 dark stores by the end of 2025. Companies such as Zepto are in advanced talks with Edelweiss Alternative Asset, domestic family offices and smaller credit funds for around Rs 1,500 crore structured had an annualised GOV of $3.6 billio n in the quarter ended December 31, 2024. Swiggy Instamart posted an annualised gross sales run rate of $1.8 billion in the same price becomes the primary differentiator for these apps with near-similar user experience, intense discounting and attendant cash burn are likely to intensify further, a recent report by ET highlighted. This month, average discounts across categories rose to 20–25% on maximum retail price compared to below 10% two years ago across various quick commerce platforms, including for segments like dairy and groceries, the sources said.
Time of India
2 days ago
- Business
- Time of India
Delhivery unveils short-haul cargo service rivalling Uber, Porter
Indian courier delivery firm Delhivery launched its short-haul parcel transport service in two locations on Friday, ramping up competition in a market dominated by the likes of Uber and Kedaara Capital-backed Porter . Near-distance parcel delivery - often within city limits - has grown increasingly popular, following the success of quick-commerce delivery services, where everything from milk to mobile phones is delivered within 10 minutes. Currently, Uber, Swiggy-backed ride-hailing app Rapido and Porter are among firms that ferry parcels from one area of a city to another. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 외우지 않아도 영어가 기억된다면? 40분만 투자해보세요 스티븐영어 지금 시작하기 Undo Delhivery's service is currently live only in the national capital region and the southern IT hub of Bengaluru, but the company aims to rapidly expand to other key metro cities, MD and CEO Sahil Barua said in a statement. Third-party logistics firms, including Delhivery, have been looking for options to diversify as their mainstay long-haul freight businesses battle intense competition from in-house logistics arms of e-commerce giants such as Amazon and Walmart-backed Flipkart. Live Events
Mint
4 days ago
- Business
- Mint
Flipkart Group-owned Myntra revises commission structure to drive low-ticket sales
Apparel marketplace Myntra has rolled out a revised seller fee structure, charging commissions as low as 0-1% for products priced under ₹500 in select categories like westernwear, sports apparel, and intimate garments, marking a significant departure from its earlier flat 15-16% commission, according to two sellers with direct knowledge of the development. The new structure appears aimed at boosting order volumes and sales frequency—especially in lower-price segments—and positions the Walmart-backed online retailer to better compete with online rivals like Meesho and Amazon, which dominate in value-driven categories. The revised rates went into effect last week. 'The new structure will encourage sellers to reduce the selling price of their products on the platform, thereby driving up sales. Ultimately, Myntra wants to be known for its various price points, especially for apparel," said one of the sellers quoted above. Moreover, it will drive new sellers to the platform, helping widen product offerings to customers. Also read:India's next 10-minute delivery? Domestic workers on demand To be sure, this isn't a one-size-fits-all approach. The revised rates are seller- and category-specific, meaning that commission rates can vary based on seller tenure, performance, and the product category. For example, long-standing sellers might operate under different slabs compared to newly onboarded merchants. This development comes just months after Myntra reported profitability in FY24, making a sharp turnaround from a ₹782 crore loss in the previous year. The move suggests a broader attempt to scale marketplace revenues by tapping into price-sensitive, high-volume consumer segments, particularly in Tier 2 and Tier 3 markets. Myntra's month-long 'End of Reason Sale', which ended 12 June, saw 60% of all orders come from Tier 2 towns like Jalandhar, Guwahati, Bhubaneshwar and Mysuru. Myntra did not immediately respond to emailed queries byMint. Consumers cut purchases The fashion and apparel industry has been witnessing a slowdown over the past few quarters, with consumers making fewer discretionary purchases due to slower income growth. According to the Retailers Association of India, the Indian retail sector saw nominal sales growth of 5% in December 2024—an important festival month—compared to the year-ago period. 'It could definitely be a clear move to compete with players like Meesho and a bunch of new-age quick fashion commerce players. It's a different category altogether—low-cost fashion typically targets Gen Z, who are the spenders of tomorrow," said Madhav Kasturia, founder and chief executive of Zippee, a quick-commerce logistics platform. Also read: Myntra steps out of India to sell clothes in Singapore Kasturia said that seller acquisition isn't the issue here—it's about tapping early customers and building future loyalty. 'This play could strengthen Myntra's presence in Tier 2/3 markets, where emerging consumer bases are becoming increasingly important," Kasturia added. Analysts say that Myntra will still go after premium and mass-premium users. This doesn't necessarily mean a shift in positioning. There's still enough market share out there—no real pressure yet to rethink fixed fees, even with quick and social commerce scaling up, Kasturia added. Price play 'At face value, the move resembles a direct response to Meesho, whose growth has been underpinned by a zero-commission, low-AOV (Average Order Value) model targeting Tier 2/3 regions. But instead of directly matching Meesho's model, Myntra is providing an alternative—it filters the approach through the lens of category specificity, price segmentation, and marketplace control. It's about occupying the same price territory without sacrificing platform architecture or consumer trust," said Nilaya Varma, co-founder at Primus Partners India. Varma added that introducing price play where it matters while retaining strength in discovery, brand loyalty, and post-sale service seems to be a parallel smart move. 'There must be, undeniably, a potential 'tension' between Myntra's traditional brand positioning—urban, aspirational, style-focused—and this aggressive push into low-ticket commerce. But rather than a departure, this could be seen as a deliberate strategy to layer the platform. Think of it as a pyramid: high-frequency, low-margin products draw mass traffic at the base, while curated labels, premium brands, and 'higher categories' anchor the top," Varma said. Analysts say this kind of tiered strategy isn't new. Amazon and Flipkart have long balanced volume and value, offering affordable entry points while simultaneously cultivating premium verticals like Amazon Luxe and Flipkart's private labels. Myntra appears to be adopting a similar approach: drawing in price-sensitive shoppers and high-volume sellers at the base, then using data-driven insights and personalized recommendations to elevate them toward higher-end offerings. This model safeguards the premium segment rather than diluting it through thoughtful segmentation, not exclusion. Expanding into lower-ticket categories is a natural evolution, especially in a post-pandemic landscape where cost-conscious consumption has grown even among upwardly mobile consumers. New mantra 'E-commerce works best when small profits are made on a large number of transactions. With this move, Myntra is clearly betting that lowering commission rates will attract many more sellers, increase the number of products listed, and drive up order volumes. The idea is that even if the profit per item is low, the total gains will grow because of the higher activity on the platform. Myntra's recent return to profitability in FY24— ₹30.9 crore after a steep loss of ₹782 crore the year before—already shows that this kind of scale-driven strategy may be starting to pay off," said Varma. However, analysts believe that the 0-1% commission rate is unlikely to be a long-term universal model. Also read:Myntra to bring Abercrombie & Fitch, Hollister stores to India in a franchise deal Instead, it functions as a market-stimulation lever—intended to bring in price-competitive sellers who might otherwise flock to Meesho or Shopee-like platforms. "It's a move to balance the supply equation, especially in high-friction categories like accessories, fast fashion, or basic apparel—where commissions eat into seller margin and discourage onboarding," added Varma. Moreover, there is growing pressure on platforms like Myntra from the rapid rise of quick-commerce and social-commerce models, which have redefined consumer expectations around speed, price, and accessibility. 'However, Myntra's response has been measured and strategic, not reactionary," said Varma, adding that, unlike grocery or impulse categories, fashion requires a blend of speed and brand experience. Myntra has already begun piloting express delivery services like 'MNow" with 30-minute or 4-hour timelines in select cities. To optimize fulfilment, Myntra is leveraging its network of brand partners and dark stores. To optimize fulfilment, Myntra is leveraging its network of brand partners and dark stores.
CNBC
6 days ago
- Business
- CNBC
China's personal delivery market is on the rise. Only some are already making money
China's large labor force and internet ecosystem have supported fleets of couriers delivering an increasing range of products on demand. U.S.-listed BingEx has taken a unique strategy by dedicating one delivery person for each order, becoming "a pioneer in the dedicated courier service industry," Deutsche Bank analyst Jessie Xu said in a June 10 report that initiated coverage on the stock with a buy rating. By using the Chinese company's app, someone in China can have their suitcase transported across town, or have the courier buy a specific cake and deliver it to a party. The business operates under the brand "FlashEx" or "Shan Song," which means "delivery in a flash" in Mandarin. The brand's name has become a local way to describe the service, just like Kleenex. FlashEx "started recording positive unit operating profit from 3Q23 and has been profitable since then," Deutsche Bank's Xu said, pointing out that most of its competitors still operate at a loss in the one-on-one courier business. On-demand delivery has become a competitive market that logistics companies and e-commerce platforms have expanded into, often with heavy subsidies and piling several orders onto one courier. But even Alibaba expects consumers will want to buy on demand, and in the last several weeks has rolled out a channel for people to buy food, clothes and other products on e-commerce platform Taobao — and get it delivered in as quickly as 30 minutes. Most of FlashEx's competitors are subsidiaries of larger companies with other business lines. U.S.-listed Dada , which was previously a Walmart-backed supermarket delivery business separate from was absorbed into the Chinese e-commerce giant over the last few years. Dada reported loss from operations rose to 2.16 billion yuan in 2024, up from 2.11 billion yuan a year earlier. Earlier this year, launched a campaign in on-demand delivery to compete with food delivery giant Meituan. Both companies reported operating losses for "new" initiatives in the first quarter. Chinese logistics giant SF Holdings has a small intra-city on-demand delivery unit, which contributed to just over 3% of total revenue last year. The segment's revenue rose by 22% from a year ago, while its net profit more than doubled to 132 million yuan . The on-demand delivery market is expected to grow by an average of 13% a year through 2028, a slowdown from 20% annual growth from 2019 to 2023, Xu said in the report. "This growth should be supported by the rapid expansion of Online-to-Offline (O2O) retail, food delivery services, and increasing demand for personalized delivery options." But personal, one-on-one courier services still represents only 4% to 5% of that delivery market, Xu said, predicting 10% annual growth in the next three years. She pointed out that as of the end of 2024, FlashEx had 2.8 million riders serving over 100 million registered customers in 295 cities. U.S.-traded shares of BingEx closed at $3.87 a piece on Friday, for 21% upside to Deutsche Bank's price target of $4.70. However, the stock has plunged more than 50% so far this year after the company grappled with more competition and tepid Chinese consumer spending in the last several months. "FlashEx has strategically exited some 2B businesses since 2H24, as the company is focused more on" unit economics," Xu said. "Management made it clear that the company will not chase pure volume market share gains at the cost of profitability. … This set a positive tone for the company's sustainable growth and profitability in the mid-to-long run." — CNBC's Michael Bloom contributed to this report.
Time of India
14-06-2025
- Business
- Time of India
Reverse flipping by Indian startups gathers steam: Here's all you need to know
Driven by better listing prospects and regulatory ease, several Indian startups and companies have started to redomicile to India from overseas. Here's a look at prominent companies that have completed or are in the process of 'reverse flipping': Meesho : ET reported on June 13 that Meesho could see the process of its redomiciling from the US to India conclude as early as this week. The ecommerce marketplace is heading for an initial public offering (IPO) this month, at a likely size of $700-800 million. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo Meesho had applied for the National Company Law Tribunal's (NCLT) approval for a reverse merger in January. Flipkart : Rival etailer Flipkart's board on April 22 approved the plan to shift its domicile from Singapore to India. India's largest ecommerce company is eyeing a public listing by 2026. Live Events ET had reported in December that Flipkart had started preparing for its public offering with a definite timeline of 12-15 months. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Dream Sports : Dream Sports, parent of fantasy gaming platform Dream11, completed its flipback from Delaware, US, to India through the reverse merger route in a quiet move. The company was among the first of new-age firms using the fast-track mechanism for cross-border mergers, under which a foreign holding entity can merge with its Indian subsidiary without clearance from the NCLT. Zepto : Quick commerce platform Zepto announced in January that it completed its reverse merger from Singapore to India ahead of its IPO. Chief financial officer (CFO) Ramesh Bafna announced the milestone on LinkedIn, describing it as a 'historic completion in record time.' Groww : In May 2024, wealth management startup Groww moved its domicile back to India from the US. The startup paid Rs 1,340 crore ($160 million) in taxes after the flipback, which resulted in Groww clocking a net loss of Rs 805 crore for the financial year ending March 31, 2024. However, in FY25, Billionbrains Garage Ventures, the parent company of Groww, reported a more than threefold jump in net profit to Rs 1,819 crore and a 31% increase in revenue to Rs 4,056 crore for fiscal 2025. Pine Labs : Digital payments firm Pine Labs received the NCLT's approval in April to merge its Singapore entity with its India entity, thereby reverse flipping its parent entity back to India. Pine Labs will become only the second major fintech to return its headquarters to India after Groww. Razorpay : Bengaluru-headquartered digital payments firm Razorpay is another fintech in the process of moving back its parent entity to India from the US. PhonePe : In 2022, Walmart-backed PhonePe moved its domicile from Singapore to India. The fintech firm also moved the ownership of the recently acquired IndusOS Appstore (OSLabs Pte Ltd) from Singapore to India.
