When it comes to purchasing some of the best clothes, shoes, accessories, and lifestyle products online, Indians have made use of either Myntra or Jabong to do their shopping.
Myntra is however much more reliable and effective to use these days than Jabong. For one reason, Jabong is no longer in business anymore as its operations have been duly shut down by the management.
Myntra is fast, easily accessible, trustworthy, and very much capable of handling the fashion and general lifestyle needs of Indian customers who desire to do their shopping on the app.
Myntra’s powerhouse approach to the e-commerce business cannot possibly be compared to what is happening over at the now “defunct” Jabong’s side. The difference really is clear.
Unarguably, even when Jabong still had its operations going on, its success still couldn’t be rated at the same level as Myntra’s. In India today, Myntra is a respected online sales app that a lot of people patronize for its efficiency.
Not only are Myntra’s products top-notch and long-standing; these products are also delivered on time and in the right condition for the customers to use.
Many customers are really satisfied with their shopping experience on Myntra.
Why Myntra was better than Jabong
Myntra was greater than Jabong because of many reasons that e-commerce enthusiasts and investors in India have known for a long time. In fact, in conversations concerning the best e-commerce apps in India, Jabong does not come up at all.
Compared to Myntra’s solid business model and sure-fire consistencies, Jabong comes up really short – especially when you take a look at the revenues and the customer satisfaction levels.
Myntra was founded in 2007, and at the beginning of its journey, Myntra served as a website and app where customers could customize T-shirts, shorts, mugs, and other such personalized gift items on a budget.
Since then, Myntra has successfully gone into the online sales of clothing and fashion products all over India. This business approach has proved to be sustainable and commendable – you can see the evidence of that in the number of positive reviews that they receive online.
Because of how good Myntra has been handling business in the e-commerce space, Flipkart acquired it in 2014 in a deal that further changed the fortunes of this truly great company.
If you are looking for flamboyant, classy, and trendy fashion designs, you can go on the Myntra app today and get the best fit for you certainly.
Footwear, jewelry, shirts, shorts, etc. can all be purchased on Myntra at a good price once you do your shopping here.
Myntra gives customers the best shopping experience that they can get, all with the comfort of just using their mobile phones. The ease and safety of paying for orders on Myntra are also quite standard and cool.
Myntra is much better than Jabong in many more ways than one – they just are not in the same category.
Myntra is one of the best e-commerce apps in India today for you to ever fruitfully (without hassles) get your quality fashion and lifestyle products today.
Are they the same?
Myntra is not the same as Jabong, although they do cater to the same kinds of customers who want to buy the same things. As it is, Myntra and Jabong are different as they can be – Myntra is functioning while Jabong is not.
The reason why you might be having some confusion about the identities of these two apps is the fact that Myntra has actually acquired Jabong in 2016 in a deal that sealed its place as the better of the two.
Jabong was going through some issues that made its operations suffer some heavy losses and this made the e-commerce company look out for more investments from outside since its investors then refused to put in more money into the failing business.
In 2016, Flipkart – through its subsidiary, Myntra, purchased Jabong for $70 Million. Jabong just couldn’t keep up its rivalry with Myntra and all the other big shots in the fashion and lifestyle aspect of e-commerce any longer.
Since its acquisition by Myntra in a move inspired by Flipkart, Jabong still hasn’t been doing that well. It must be something to do with the level of trust that people accord Myntra and other similar fashion and lifestyle shopping apps over Jabong.
Jabong is not the same as Myntra, but they are owned by Myntra – legally.
Being bought and acquired by Myntra means that Jabong is no longer in active competition with Myntra and other similar fashion and lifestyle online sales apps (not that the competition was that fierce in the first place though).
Buying and acquiring Jabong through Myntra has cemented Flipkart’s place as the top e-commerce app in India today, followed very closely behind by Amazon India.
Before the sale, the Global Fashion Group (GFG), who owned Jabong, had been looking for buyers to take over the entire company for more than a year before Flipkart – Myntra stepped in.
The deal is a good one for Myntra because Jabong already has a number of global connections that help it to supply customers with quality products at reasonable times. Combining this with the winning formula already working at Myntra, there is bound to be more successes to come.
So no, Myntra and Jabong are not the same. But they are affiliated because Myntra acquired Jabong in 2016 under Flipkart’s leading.
These two used to be “rivals”, but as it is now, Jabong is no longer a threat by any means to Myntra.
Don’t confuse these two brands together – Myntra and Jabong are not the same.
What went wrong with Jabong?
Jabong was enjoying its own success in the e-commerce space because of the way it allowed Indian customers to have access to international fashion and lifestyle brands at really affordable prices.
However, over the years, Jabong’s success has been short-lived and unsustainable. There are a lot of issues that led to the downfall of Jabong and we will address them today.
Some of the problems that plagued Jabong before its eventual shutdown are:
- Loss of market share
- Multiple exits of senior management executives
- The decline in Investments and Funding
Loss of market share
It all started with Jabong losing a lot of market shares, along with their hold on the market, after a lot of their competitors started moving up in ways that they just couldn’t.
Losing market shares and valuable shareholders is something that top businesses just can’t afford to do if they desire to stay in business and stay afloat.
Jabong lost so many market shares that its market value dropped drastically in ways that did not escape the attention of key stakeholders and industry experts all over the country and worldwide.
The business began to suffer for it, and soon, many customers began to steadily withdraw their patronage from Jabong.
Multiple exits of senior management executives
Senior executives at the top management levels in Jabong began to leave too as they saw that the operations of the e-commerce company were no longer sustainable.
With no one to head the affairs of the company at the various positions, the problems of Jabong began to escalate even further. There were internal discomfitures in the company that could not and/or was not rectified till it totally ruined the company.
Seeing a lot of senior management executives leave Jabong was a strong sign to the public that there was a whole lot of trouble in this online sales company.
The decline in investment and funding
Given all the issues that Jabong was going through, their major investors stopped funding them with the capital that they needed to keep the business afloat, and this further crippled and incapacitated Jabong.
Rocket Internet, Jabong’s major investor since its inception, refused to put more money in the e-commerce marketplace as it showed to be having problems that could not be fixed easily.
Rocket Internet was in talks of stepping out totally from involving itself with Jabong until it put it up for sale and acquisition in order to make some profit from dealing with this e-commerce app.
Without any investments, funding, or backing, Jabong slowly died out totally.
Why did Myntra acquire Jabong?
Myntra bought out the competition effectively and affordably when they acquired Jabong in 2016. This deal is a business move that has been applauded by several industry giants so far, because, it was the most creative thing to have done at the moment.
Although they are both fashion and lifestyle e-commerce apps that serve basically the same kind of clientele, getting Jabong under the helms of Flipkart is a truly wise move on Myntra’s part.
Some of the reasons why Myntra acquired Jabong include the following:
- Affordable Leveraging
- Access to more fashion and lifestyle customers online
- Stronger position in the Indian e-commerce space
This deal was a very affordable and smart one for Myntra to leverage at the time. Not only is this a way to effectively take out the competition by buying them out, but this is also a cool way to get all that comes with Jabong.
Myntra buying and acquiring Jabong, under the canopy of The Flipkart Group, is a deal that is meant to strengthen Myntra’s (and Flipkart’s) position as one of the top e-commerce marketplaces in India today.
It is great leveraging and good business on the part of Myntra because when you look at it, Jabong won’t ordinarily be sold for $70 Million by any stretch of the imagination.
Myntra took advantage of the bad spells that Jabong was going through and then swooped in to make a deal that further consolidates its stance as one of the best online places to shop for your fashion and lifestyle products in India.
Access to more fashion and lifestyle consumers online
By acquiring Jabong, Myntra now has the access to all the loyal customers that have been shopping on Jabong for their fashion and lifestyle products/items.
Due to this acquisition deal, Myntra has gotten more than 15 million active users from Jabong who are really willing to do business with Myntra now that this acquisition has occurred.
This deal is a huge win for Myntra because they have now gotten more customers who want to purchase the same products that they have to offer in their inventory.
In the long run, and in the short run as well, it is clear to see that Myntra acquiring Jabong is a really great deal that should be commended.
Stronger position in the Indian e-commerce space
With this deal, Flipkart – Myntra has strengthened its stay at the top of online sales in India. As far as e-commerce is concerned, Myntra and its parent company, Flipkart, now have the leverage that they have been desiring.
Many more Indians have now turned to patronize Myntra for their fashion and lifestyle needs since the onset of this deal because they recognize the dominance that is now at play here.
This is why this deal is a wise one – less competition, more customers.
How was Myntra Bought by Flipkart?
In 2014, Myntra was acquired by Flipkart for an undisclosed price in a deal that brought these two e-commerce giants together. The acquisition is 100% and wasn’t hostile at all as it was mutually consensual.
Although the price of the acquisition was not officially stated, many people speculate that the cash involved could be up to $300 Million for the acquisition of Myntra based on how successful it is.
Myntra, before the acquisition by Flipkart, was already seeing a whole lot of success on its app based on the influx of customers that were trooping in to order for their lifestyle products and fashion items.
Flipkart, no doubt attracted by the greatness that was happening over at Myntra, invested top dollar into acquiring this e-commerce business just so it could find ways to enlarge its borders and spread its influence in online sales in the country of India.
While this is a 100% acquisition deal, Myntra still maintains complete independence and solidarity in the way that its trade is run. The reason for this is so that the company culture and winning formula will not be messed with by any unfamiliar hands.
For Myntra and Flipkart, this is a win-win situation as the two can truly come together to take over the Indian e-commerce space by serving customers with the best products and services that they can get online.
How did this Myntra takeover happen?
Myntra being acquired by Flipkart was not an overnight deal. It took some deliberation and closed-door discussions to make it really happen for the benefit of both parties.
Flipkart approached Myntra because it wanted to diversify its interests into the fashion and lifestyle aspect of the e-commerce business and Myntra was already doing well in that wise.
Since it is much easier to buy and/or acquire than to start something from scratch, Flipkart decided to place enough on the table to actually attract the attention of Myntra and snag a deal that would give both parties much gain.
The deal was hugely facilitated and prompted by the investors and partners that Myntra and Flipkart had in common.
These partners, Accel Partners, and Tiger Global, understood the huge potentials that the acquisition could bring so they supported it wholly.
Having their mutual partners support the deal was the most important piece in the jigsaw before the deal could be brought to life. Flipkart and Myntra agreed to personal terms because it benefited them both in ways that won’t trickle away soon.
Without the investors approving the 100% acquisition of Myntra by Flipkart, that deal would not have gone through in the slightest.
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