Say goodbye to huge discounts as Myntra, Jabong wants to make profits now

Huge discounts and huge money spent on investments, advertising and promotions to force people to buy from their sites, everything is mounting losses for fashion e-tailers now.

Fashion portals such as Myntra and Jabong, which offer big discounts, are checking their losses now and want to make some profits.
For this, they are going to lower down discounts to as low as 3-4%.

Jabong’s Sanjeev Mohanty said they will reduce discounts.

"We will bring down discounts by selecting better products and assortment of products. We are looking at creating efficiencies at various levels such as warehouse, supply chain and other aspects," he told ET.

Xerion Retail, which owns Jabong, crossed Rs 1,000 crore sales mark for the year ended March 2015.

But its loss swelled to Rs 43.6 crore from Rs 16.6 crore a year earlier.

Reportedly, Myntra will also miss its target of $1billion annual gross merchandise value (GMV) this fiscal.

In this regard, the new CEOs of Myntra and Jabong are now expected to go towards profitability.

According to Goldman Sachs, India's ecommerce market is set to soar to $103 billion by FY20 from $26 billion at present.