Walmart-owned e-commerce marketplace Flipkart has formally shut down Jabong to concentrate on its premium fashion marketplace Myntra.
Flipkart which had acquired the fashion platform around four years ago is now going to redirect Jabong’s portal and its app to Myntra’s shopping window, according to a report in the Economic Times.
Flipkart had bought Jabong for $70 million (in cash) in 2016 but has since been finding it difficult to work out a conclusive long-term strategy for the fashion portal.
Flipkart had in July last year said that it had begun to slash a significant chunk of its marketing expenditure in Jabong and redirecting users towards Myntra by providing incentives.
Walmart had in November last year took a non-cash impairment charge of $290 million for the value of the ‘Jabong’ trade name in the third quarter due to its investment in the fashion portal.
According to data from McKinsey’s FashionScope, the Indian clothing market will be worth $59.3 billion by 2022, making it the sixth-largest marketplace worldwide as compared to the UK and Germany.
Flipkart acquired Myntra in 2014 and Jabong in 2016 controls around 70% of the market.
