Walmart-owned Flipkart has started nudging users away from Jabong to Myntra, in what could be a precursor to the imminent shuttering of Jabong as an independent brand, sources in the know said.
Flipkart has cut a bulk of its marketing spend on Jabong, and has been giving incentives to users to move from the Jabong app to Myntra on its homepage over the past few months.
“The direction for Jabong has been unclear for more than a year,” said a person directly aware of the matter. “But Jabong, standalone, is not differentiated from Myntra, and running two websites on the front-end makes little strategic sense now,” he said.
Data sourced from SimilarWeb, which tracks web analytics for businesses, indicates that Jabong’s web traffic has steadily declined to 2.5 million in June from 7.5 million in January. Traffic to Myntra during the same period was flat at 30 million.
App downloads of Jabong on Android smartphones have also fallen to 1,35,812 in June from 6,87,140 in February, according to data sourced from App Annie, a platform that collates app analytics and app market data.
“This is going to be a phased-out transition to Myntra from Jabong,” said another person directly aware of the matter. Jabong still generates traffic that is valuable, but Flipkart wants to move to Myntra, the person said.
A Flipkart spokesperson declined to comment on a detailed questionnaire sent by ET.
Flipkart has been struggling to figure out a definitive long-term strategy for Jabong since its acquisition, a top executive at Myntra said.
“The dilemma is that Jabong has a sticky customer base, which Myntra wants to leverage, but investing marketing dollars in both businesses is not logical,” he said.