Mumbai, February 5: Walmart-owned Flipkart has formally closed Jabong operation over four years after acquiring the company. According to an Economic Times report, the intention behind the closure is to focus completely on Myntra for its apparel business. Infact, reportedly, Jabong's flagship portal and app are being redirected to Myntra.
Last year, Flipkart had said that it had begun to cut a huge chunk of its marketing expenditure on Jabong and redirecting users towards Myntra by offering them incentives. Formal closure to Jabong will help Flipkart to consolidate operation and make its marketing budget efficient. Walmart After Investing in Flipkart, May Layoff Many Jabong Employees & Merge it With Myntra.
The e-commerce major Flipkart that acquired Myntra in 2014 and Jabong in 2016. Last year as well, there were reports that in the absence of the long term strategy for Jabong, Flipkart began redirecting users towards its Bengaluru-based fashion e-commerce portal Myntra.
Jabong witnessed web traffic going down drastically over the last year and the number of app downloads also crashed from a 6,87,140 in February to 1,35,812 in June, according to App Annie data.
(The above story first appeared on LatestLY on Feb 05, 2020 11:19 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).