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E-commerce giant Flipkart has formally shut down its fashion, clothing and accessories platform Jabong, nearly four years after buying it for around $70 million. The Walmart-owned entity will now be focusing completely on Myntra, its premium fashion and accessories platform, The Economic Times reported.
As per the latest development, the Jabong web portal and the app will be redirected to Myntra’s shopping portal. The move, however, does not seem to be sudden and have been in the works for around a year.
According to a news report in July last year, Flipkart had begun to slash a significant share of its marketing expenditure in Jabong and were redirecting Jabong users to Myntra by offering them with various incentives.
The latest initiative is expected to help Flipkart consolidate its operations and make the marketing budget efficient, the report said quoting experts.
Flipkart that acquired Myntra in 2014 and Jabong in 2016 controls around 70 per cent of the online market.
As per the report, Jabong has witnessed a decline in its traffic, with its daily active users dropping by 10.61 per cent in December 2019. According to web traffic and market intelligence firm SimilarWeb, Jabong’s app downloads had dropped by 12.71 per cent.
On the other hand, Myntra noted a 41.18 per cent rise in downloads and 31.87 per cent increase in its daily active users.
