Believe it or not but I have never thought much of the bargains and array of products being sold on Myntra after having shopped on Jabong. I have been `that’ nameless, salary-less champion of the brand Jabong and always raised my eyebrows if one were to mention that they shop on Myntra. Not that I haven’t shopped on Myntra but that would be in the early days when the brand was into customized merchandise and I remember buying a red jersey with my son’s name on it. In fact, he loved it and wore it daily- kicking a football or hitting some cricket shots or whatever. I still feel upset about Myntra stopping the customized business but I guess all is fair when you want to be the e-commerce behemoth which surely Flipkart-Myntra is aiming towards.
Jabong rode on reliable international brands like Dorothy Perkins, Next, Mango, Topshop and its discounts made them much more alluring to Indian consumers looking for good quality at a greater price. I know many are disappointed fearing the fate of Jabong after the acquisition purely because we had a great experience with purchases and returns were easy, along with the speedy delivery. Flipkart’s acquisition of Myntra and its decision to go app only totally ruined any remotest possibility for me to even consider browsing through their catalogue.
Flipkart-Myntra’s acquisition of Jabong truly signifies the ambition that the Bansals have to own the e-commerce space in India. Industry anyway was expecting a consolidation in this space and this move just confirms it. The acquisition of Jabong is also a step towards taking the bull (read Amazon) by the horns. Myntra-Jabong together means immediate increase in the brands that they now can boast of and offer to their consumers and brings Myntra a step closer in being the `destination’ for fashion and lifestyle in India. Not to forget that this deal immediately increases their customer base which is critical for any venture be it online or offline.
Strategically, Amazon too launched its hugely popular service Amazon Prime just when Flipkart-Myntra-Jabong friendship was being announced and creating a buzz in the e-commerce space. Amazon Prime is really popular in the US especially for its videos that one hears will also be available in the Indian market. In fact, even before Amazon Prime there was Flipkart First targeted to create a loyal customer base. Amazon Prime seems really attractive currently with subscription being offered at Rs 499 as an introductory price (read more on Amazon Prime and Flipkart First here )
The e-commerce space is getting interesting with the latest development. However, I am still scratching my head to understand why Jabong came up with its controversial ad at a time when it was looking to sellout. Probably all the publicity helped the brand to find a buyer.
As for me, I shall continue to shop and browse on Jabong as there is a certain comfort that I have being a loyalist and yes keep an eye too on how the deal affects all the stakeholders involved.