Heights of overconfidence: Myntra sales dip 10% in app-only mode in less than a week!

[quixand]

^^ Unlikely. While it may seem to the amateur like they may have reduced costs by going app only, they have not reduced any costs. All their existing infra still has to be around. All of their web services would have to be around and its just that the front end is an app instead of a web page.. The only thing they have reduced is their potential user base.

Web services are not the only Infra related cost here right?

Do you have visibility to how these web services are interacting with which Inventory Management System on which platform?

While website don't cost significant money to host but I honestly think that this is something that that have done create artificial demand for mobiles to get better cuts for Exclusive mobile launches.

What about people practices? Any news on that? Absorbed in other areas?

There are intangible costs. Are you seriously suggesting that these guys have done this to reduce user base? Reduce clicks on websites and reduce chances of another Billion Dollar Day helpdesk and PR fiasco? Maybe.

edit: http://economictimes.indiatimes.com...-want-to-go-app-only/articleshow/47996140.cms

 

[Lord Nemesis]

^^ Rest assured that they have not cut any previously existing costs. This is a an experiment that they have dared to do because it is somebody else's money that is at stake. They have not cut people (In fact Mytra is expanding and apparently planning to open another dev center in Hyderabad) nor they have cut on technical infrastructure. It is all still there. The only thing is that they have made their websites inaccessible to the public. Also, FYI, focusing on mobile like they are doing actually means that there is additional infra required like for example for handling all the spam that they send as push notifications.

In fact these push notifications like features are the part of the reason why they want to move to a app only system. These sort of companies want better control and tracking over the life of their customers, They can push ads whenever they want regardless of whether the user is interested or not. They have full access to the users contacts and can send out advertising. Though a service running in background and permission to access a lot of resources on the phone, they have much better control.

Apps like Uber or Ola can track where a user is any point of time. In fact, Uber demonstrated their GodView console from where they can track the daily movements at a minute level of all their customers who have their app installed.

While they may not have intended it, by going app only, Myntra reduced their user base, so they have also reduced the extent of their losses. Don't forget that these companies have been operating in losses ever since they started and the higher the sales and more the users, the more the losses for them. That is actually the only way they have (indirectly) cut costs.

The link that you have posted is something I have come across and read already and its an absurd assumption and whoever wrote it has no technical knowledge about these things.

 

[toocool6600]

If I understand correctly............ App based model is to promote sales to new heights soon, ofcourse sales are hit initially but I think it won't be the case for long.

Human beings are very dynamic creatures, once an option is closed 1st they react strongly but sooner rather than later they except the new reality pretty soon, and it's not that everyone in india has stopped using myntra as soon as they went app only............ Majority of the users will come back because of the fact that myntra is actually the best service provider in its space, I have never faced any issues with myntra, always next day delivery always next day pickup, always same day refund processed............... Moreover there are billion people all over the globe having android devices, how many of them root their phones? Million?........ Same way does it matter in a growing business if they lose some customers because of new app only model, out of which majority will come back soon enough?

Moreover new generation is all about.......... I want it now, I want it now, I just want it now............... Who the hell is going to wait to go take a look at desktop site first?................. Wait a minute, that doesn't even exist.......... So why wait?


I still have Flipkart and myntra on my phone........ And as soon as i look at something on app, few hours later I get notified that buy that shit now, the item is waiting in your cart.......... It's ridiculous but it's all about control and taking advantage of............ I want it now attitude

 

[quixand]

^^ Rest assured that they have not cut any previously existing costs. This is a an experiment that they have dared to do because it is somebody else's money that is at stake. They have not cut people (In fact Mytra is expanding and apparently planning to open another dev center in Hyderabad) nor they have cut on technical infrastructure. It is all still there. The only thing is that they have made their websites inaccessible to the public. Also, FYI, focusing on mobile like they are doing actually means that there is additional infra required like for example for handling all the spam that they send as push notifications.

In fact these push notifications like features are the part of the reason why they want to move to a app only system. These sort of companies want better control and tracking over the life of their customers, They can push ads whenever they want regardless of whether the user is interested or not. They have full access to the users contacts and can send out advertising. Though a service running in background and permission to access a lot of resources on the phone, they have much better control.

Apps like Uber or Ola can track where a user is any point of time. In fact, Uber demonstrated their GodView console from where they can track the daily movements at a minute level of all their customers who have their app installed.

While they may not have intended it, by going app only, Myntra reduced their user base, so they have also reduced the extent of their losses. Don't forget that these companies have been operating in losses ever since they started and the higher the sales and more the users, the more the losses for them. That is actually the only way they have (indirectly) cut costs.

The link that you have posted is something I have come across and read already and its an absurd assumption and whoever wrote it has no technical knowledge about these things.

Yeah I understand but I've not researched enough to know whether the Practice itself has been dissolved or not. My reading of the situation is the same: To balance books.