Myntra, the Walmart-backed online fashion retailer, has revamped its pricing structure in a bid to boost order volumes and frequency of sales, particularly in the lower-priced segments. This strategic shift, effective from last week, positions Myntra to better compete with online rivals like Meesho and Amazon, which excel in value-driven categories. “The new structure will encourage sellers to lower their product prices on the platform, consequently driving up sales,” one seller noted, emphasizing Myntra’s aim to offer a diverse range of price points, especially in apparel. Notably, this change may also attract new sellers, enhancing the variety available to customers.
This initiative is not a blanket strategy; rather, it is tailored to individual sellers and product categories. Commission rates will vary based on factors such as seller experience, performance, and the specific product category. Established sellers may fall under different guidelines compared to newer entrants, enabling a more nuanced approach to pricing.
The overhaul comes shortly after Myntra achieved profitability in FY24, recovering from a hefty loss of ₹782 crore the previous year. This move suggests a strategic effort to tap into price-sensitive consumer segments, especially in Tier 2 and Tier 3 markets, where demand is rapidly growing. Notably, during Myntra’s recent “End of Reason Sale,” which concluded on June 12, 60% of orders originated from Tier 2 cities like Jalandhar and Mysuru.
Consumer spending patterns in the fashion industry have tightened recently, with buyers becoming increasingly cautious about discretionary purchases. According to the Retailers Association of India, nominal sales growth in the Indian retail sector was only 5% during December 2024-a peak shopping month-compared to the previous year. Madhav Kasturia, CEO of quick-commerce platform Zippee, observed that Myntra’s strategy appears aimed at competing with newer, low-cost fashion players targeting Gen Z consumers, who are becoming significant spenders.
While Myntra aims to draw in more sellers, the focus is primarily on cultivating brand loyalty among new customers. Kasturia noted that this expansion into Tier 2 and 3 markets, where emerging consumer bases are vital, reinforces Myntra’s multi-segment strategy. Analysts suggest that while Myntra continues to pursue premium markets, this shift does not indicate a fundamental repositioning for the brand. Rather, it signifies an opportunity to capture market share in cost-sensitive demographics without compromising on service quality.
The pricing strategy mirrors a tactical response to competitors like Meesho, which thrives on a low-commission, low-average order value model. However, Myntra’s approach distinguishes itself by focusing on category-specific, price-segmented offerings that maintain marketplace integrity. Nilaya Varma, co-founder of Primus Partners India, explained that Myntra’s strategy seeks to drive traffic through affordable items while maintaining a robust premium segment at the higher end.
As part of this evolving strategy, Myntra has begun piloting express delivery services, aimed at optimizing fulfillment through collaborations with brand partners and dark stores. This tactical move responds not only to rising consumer expectations around speed and availability but also to competitive pressures from rapid-commerce models.
In conclusion, while Myntra’s lowered commission rates are unlikely to serve as a permanent solution, they act as a market stimulant designed to attract price-sensitive sellers and encourage diverse product listings. As Myntra seeks to elevate its platform activity, the emphasis remains on achieving growth through strategic price offerings, positioning itself as a key player in the Indian e-commerce landscape.
Original Source: https://www.livemint.com/news/flipkart-myntra-revises-commission-structure-to-drive-low-ticket-sales-amazon-walmart-meesho-price-sensitive-shoppers-11750166532254.html
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Publish Date: 2025-06-18 05:10:00
