Flipkart formally shuts down Jabong

Bengaluru: Over four years after acquiring Jabong for $70 million, Walmart-owned Flipkart has formally closed its operations to shift focus completely on its premium fashion platform Myntra. As part of the move, Jabong’s flagship portal and app are being redirected to Myntra’s shopping window.
Experts said the move will help Flipkart consolidate operations and make marketing budgefficient. “The way ecommerce market in India has developed, customers need to be reacquired consciously. Since the level of stickiness is low, it is better to bring consumers to one site than spread money across multiple sites,” said Devangshu Dutta, founder of Third Eyesight, a strategy consulting firm, adding, “Given how Walmart’s focus as a business is fairly cost and efficiency conscious, it makes sense to consolidate operations.”
Myntra did not respond to ET’s queries till press time. In July last year, Flipkart had said that it had begun to cut a bulk of its marketing expenditure on Jabong and redirecting users towards Myntra by offering incentives.