Flipkart shuts down Jabong, to focus on Myntra
Flipkart acquired Myntra in 2014 and Jabong in 2016 that controls about 70 percent of the market.
Flipkart acquired the fashion platform Jabong about four years ago. Now, users are being sent to Myntra while they are visiting Jabong. This information has obtained from news reports published in the media. In 2016, Flipkart bought Jabong for USD 70 million. However, it had become difficult for Flipkart to make a long-term strategy to save its fashion portal.
Flipkart said in July 2019 that it has started slashing a significant portion of its marketing expenditure in Jabong and is redirecting users to Myntra by giving them incentives.
Flipkart acquired Myntra in 2014 and Jabong in 2016 that controls about 70 percent of the market. According to data from McKinsey's FashionScope, the Indian clothing market will grow to USD 59.3 billion by 2022. According to McKinsey's report, India has become the sixth-largest e-commerce market worldwide compared to the UK and Germany.
According to the data released by BusinessWeb's web analytics firm SimilarWeb Jabong's app downloads fell by 12.71% in December 2019. App usage was also slowly decreasing. In December 2019, Jabong's daily active users decreased by 10.61%. On the other hand, Myntra app downloads increased by 41.18% and in daily active user count grown by 31.87%.
Flipkart is India's biggest e-commerce company with headquarter in Bangalore, Karnataka. Sachin Bansal and Binny Bansal founded the e-commerce portal Flipkart in October 2007. They are Delhi IITians. They have worked for Amazon. Flipkart was originally established for online bookselling business. Now, it provides various options to buy electronic equipment, groceries, and several other items.