For Flipkart, every little win against rival Amazon India counts. Earlier this week the Bansals-led company proudly exclaimed that they are the leaders in the smartphones product category. The etailer is back with another score to prove that Flipkart is ahead of Amazon on all fronts.
June was a better month for Flipkart compared to Amazon
Flipkart’s gross sales figure for the month of June 2017 was higher than Amazon India, as per reports. While Flipkart Internet Private Limited earned more than Rs. 2,600 crore, Amazon Seller Service Private Limited’s sales totalled to more than Rs. 2,400 crore.
Flipkart’s monthly gross sales have been consistently higher than Amazon in the last six months. The home-grown ecommerce company’s sales during Big 10 sale event touched a new high.
However, Amazon India appears to be unaffected. Jeff Bezos-led company believes that their India unit is growing exceptionally well. And they would continue to invest and innovate.
The US-based ecommerce giant’s spokesperson said,
“We continued to see high growth momentum in the quarter, majorly driven by some big brand launches, the tremendous success of the Great Indian Sale in May and continued expansion and reach in India, with 80% of new customers in the quarter coming from lower- tier geographies… We are delighted and humbled by the trust from our customers, to lead in India on things that matter to our customers in just four years of our business, while continuing to innovate for India and introduce new offerings.”
Myntra gears up for B2B stint by renaming seller entity
Flipkart weaves a very complicated web in order to build subsidiary arms that would benefit them without creating any legal hassles. Its fashion arm Myntra is no different.
Here’s how the fashion etailer would achieve its B2B dreams:
- Singapore-based Flipkart Private Limited owns a subsidiary called FK-Myntra Holdings Private Limited, which is also based in Singapore
- FK-Myntra owns a subsidiary named as Quickroutes Internet Private Limited
- Quickroutes was a seller entity of Myntra, which has now been renamed as Myntra Jabong India Private Limited (MJIPL), as per Registrar of Companies filings in March 2017
- MJIPL would now sell fashion products to other companies besides Myntra and Jabong
Myntra mentioned in one of its filings that,
“The company, which currently operates in the space of providing services to customers through an online platform, now intends to diversify its business by providing services to other businesses and carry on ‘Business to Business’ selling.”
The entity was rechristened to accommodate the new B2B service, which would help the Flipkart-owned fashion etailer to expand its private label business. The etailer also wants to bring transparency in pricing mechanism of fashion related goods by creating and reshuffling online channels for wholesale businesses.
Meanwhile, Flipkart’s recent move to strengthen its own private label business has invited the wrath of its sellers. We’ll have to wait and see how ethical and compliant Myntra’s renamed entity is.