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The online segment's flattish sales growth rate helped offline players gain lost ground in the fashion category. In 2016-17, offline players posted an overall growth of 10-11%, while organised offline retailers saw over 20% growth in business. “The horizontal players have lost out in the fashion segment as the marketing and advertising budgets were trimmed over calendar year 2016, though Amazon has marginally grown in the segment owing to continued spends to promote the category," said Mrigank Gutgutia, engagement manager at RedSeer. He said the focus on high GMV categories, such as mobile phones and electrical appliances, by horizontal players, like Flipkart, has led to the fashion category's share of the GMV of ecommerce industry remaining flattish at 20-22% for the last 12-18 months. “We continue to grow at over 50% year-on-year, which is faster than the industry and consistent with our annual operating plan. We are on track to become profitable by the end of FY18. We will not be able to comment on third-party reports," said a Myntra spokesperson in an email response to queries sent by ET. According to data accessed from AdEx India, a division of TAM Media Research, Amazon India continued to be the leading advertiser across offline channels for Q1 of 2017. Industry executives said the marketing budget for Flipkart had reduced by 40% in 2016 from close to `100 crore per month in 2015, a move aimed at reducing the burn rate. Flipkart has continued to spend on digital marketing channels for its sale event while Myntra recently announced plans to target more full-price sales with little discounts, focused on promoting new brands and collections.
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