FLIPKART & MYNTRA ACQUISITION

Flipkart & myntra Synergy.

1. Presented By: ANKIT KUMAR GUPTA

2. Facts 100% Acquisition by Flipkart Rs.2,000 Crore Valuation of Myntra Deal took place on 21 May, 2014 Largest Ecommerce Deal in Indian History Myntra’s Founder will join Flipkart’s Board

3. Myntra + Flipkart Flipkart’s Reason Wanted apparel products specialization , deeper understanding of fashion, aesthetic presentation and experience. Fashion products to become the most popular category in the near future. Myntra’s Reason To have a stronger distribution network. To foray into the mobile platform To increase warehouse capacity by 4 times

4. Myntra has started offering 30-40% discount after the infusion. Simple Strategy – Combine to two entities -> get a market share a 50% -> keeping the functionality separate, take it to 60% Myntra Flipkart No. of registered users 8million 18million No. of products on stock 60,000 10 million books Annualized revenues 1,200crores(approx.) 3,355crores(approx.) Myntra attained 45% of market share in fashion lines. The combination added 600 brands making effective sales 1.5billionUSD

5. FLIPKART – MYNTRA THE GAME CHANGER Flipkart and Myntra together create the largest e-commerce stories and together will dominate the market. online fashion market share Myntra 30% & Flipkart 20%   a t present. Become leaders in the category of Fashion. Flipkarts earned 4-5% by electronics & phones category, F&A will generate double digit margins. 65% market share - online fashion segment by December 2015.

6. FILTER CRITERIA MARKET SEGMENT FLIPKART Electronics, books MYNTRA Apparel (>50%) Deal was an added vertical to the line of business Apparel business expected to grow from 3 billion to 50 billion hence a prospective sector of business SYNERGY Cost optimization – by using common resources as they have common vendors Operational synergy – by increasing market share and becoming more dominant Increasing sales – through cross selling, up selling i.e. selling apparel higher profit margin Flipkart merger – a growth merger for Myntra Launch of first online personalized style service, more brands under private labels and foraying into premium designer collection

7. -> Myntra to adopt Flipkart‘s Operational model - Marketplace Model in order to overcome: No need for Warehousing No shipping Costs Increased Profit Margins Expand its reach to new customer.

8. -> The biggest Competitor – Snapdeal, which is backed by ebay . -> Discourages the growth pace of Jabong . -> Walmart’s entry into the indian e -market is imminent. -> It squares off against “Amazon” for dominance of India's fast-growing online retail market.