Flipkart plans to accelerate growth with private brands in home and furnishing

Rebecca Menezes | Sep 09, 2020


Just last week, IOS reported how online furniture marketplaces Pepperfry and Urban Ladder were trying to outdo each other and achieve their profitability goals. Both ecommerce companies are trying their luck with brands. Urban Ladder is attempting to rebrand and Pepperfry has launched a new in house brand.

Online retail’s top marketplace Flipkart would also like to see how far it can go with private brands in its home and furnishings category. And as a result, the etailer is planning the lunch of private labels in this category. The etailer wants to make this segment one of its main growth drivers next year. This is the primary agenda behind this motive.

Flipkart has considered offering private labels for a few months now. Private brands provide advantages like:

Stronger grip over product sourcing

  • Better design
  • Bigger margins
  • Stronger customer base
  • Stronger customer loyalty

How will the etailer go about this?

The head of Flipkart’s home category, Amitesh Jha said private labels will be launched in case of small products like furniture, consumer electronics and home appliances, small home appliances, home improvements, home decor and furnishings.

TV, household and kitchen items, home furnishings and large appliances will be the main focus.

Jha stated, “This is one segment which has not been disrupted at all, be it by online or offline players. Furniture, for example, is still a pain point for consumers regardless of the medium on which it is bought. We have supply chains specific to the requirements of the different items.”

Flipkart’s home category objectives

Fifteen percent of Flipkart’s revenue comes from its home category. So, the etailer plans to grow it significantly.

Urban ladder has teamed up with Flipkart to sell its products on the multi-category platform. The partnership gives Flipkart better variety to offer in this category.

Offline competition for Flipkart

Flipkart’s major offline competitor is BigBazaar. It is one of the largest offline retailers in the home and furnishing category.

But Flipkart doesn’t seem to be frazzled by the offline players according to Jha. He said, “Offline is always the primary competition. But it is fragmented. No one will have our scale in terms of sourcing and customers.”

Online competition for Flipkart

The home player’s arch rival, Amazon, has been pushing private brands already in the fashion category and also its home and kitchen segment. The etailer has partnered with Urban Ladder too. This could either boost Amazon’s sales or null the effect of the partnership Urban ladder has with both marketplaces.

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Rebecca Menezes

Rebecca Menezes

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