BENGALURU: Flipkart-owned Myntra will open offline stores in the next three months at a time its annualized gross merchandise value, or GMV run rate, has hit $1 billion, post discounts, its CEO Ananth Narayanan said on Monday.
GMV , in e-commerce parlance, is overall sales generated on an online platform, not factoring in discounts and returns, out of which e-tailers take home any where between 5% and 20% depending on the category . Myntra plans to start physical stores by selling its own brands -Roadster, All About You and HRX -in an attempt to bolster its brand play across channels. The online retailer, which retly acquired smaller rival Ja cently acquired smaller rival Jabong for $70 million to further strengthen its number one position in the fashion and lifestyle e-commerce category , said these brick-and-mortar stores would act as experience zones rather than a platform meant to prop up its sales.
The hybrid model of running online stores with a select physical presence is finding takers for many online commerce companies. Global e-commerce giant Amazon recently opened a brick-and-mortar store in New York. In India, players like furniture e-tailer Pepperfry and eyewear seller Lenskart have explored the offline route as well.
“We are still figuring out what kind of sales we want to do from these experience stores. Right now, we’re talking to traditional retailers to sell these three brands via their offline channels,” Narayanan told TOI.