In spite of cost cutting to make profits, Flipkart is still calling full steam ahead when it comes to growth plans. India’s number one online marketplace introduced private labels to its platform recently and believes they will be their ride to profitability. In fact, by the end of this fiscal, the etailer expects private brands to spread across a wide variety of its product categories.
Plan for Private Labels
By December 2017, Flipkart will move from 3 private brands across 36 categories to 7 private brands across 80 categories. And, this should contribute of approximately 10% of the etailer’s revenue, mentioned Adarsh Menon, VP and head – Private Labels at Flipkart. At the end of the fiscal 5 more categories will be added to the list.
He said, “The private labels would contribute 10% of units etailed on our platform and contribute as much to our revenues.”
Since 6 months ago, Flipkart launched private labels under categories:
- Electronic accessories
- Home décor
- Small home appliances and audio
This has intrigued online shoppers to a substantial extent and now the etailer is looking to move to furniture, fashion apparel and fashion accessories, Menon claimed.
Arch rival, Amazon India launched private labels on its platform too, with similar profitability expectations as Flipkart. But, for the latter, there are other things in the oven as well.
Focus remains on big tickets
Apart from private label expansion, Flipkart will continue to concentrate on large appliances it appears. The ecommerce company announced it will have a new warehouse in Ahmedabad that will solely be for large appliance – a top focus category. The new storage facility will ensure customer needs and expectations are met in terms of minimal lag in delivery and fulfilment of orders for large appliances from Flipkart.