The need for rebranding
Large appliances are big ticket items that Flipkart as well as Amazon are focusing on. The home-grown ecommerce leader believes that rebranding ‘large appliances’ to ‘big home appliances’ makes better sense as far customers’ perspective is concerned. This could be considered as prep for the upcoming festive season period, when the sale of appliances picks up.
Sandeep Karwa, Flipkart’s head of large appliances explained the reason behind this move. He said,
“We are rebranding the category as Big Home Appliances, so that we take care of all televisions and appliances considered large. From a supply chain perspective, large appliances made sense; from a customer point of view it was not making sense. People were not considering us when it came to purchase decisions about large appliances—when they were thinking of buying their next TVs, fridges or ACs, they were not considering Flipkart in the option set of where to buy or for that matter they were not even referring to Flipkart on what to buy. So, we decided to rebrand it.”
New warehouses and private labels to support Flipkart’s home appliances category
Flipkart leads in the online large appliances category but the etailer wants to increase its market share by implementing different strategies. While rebranding is one of them, Flipkart is also looking to launch private labels and expand its warehousing capacity to increase appliances’ sales around Diwali festival.
“We’ve worked relentlessly over the last few years to open up new warehouses. The count of warehouses (for large appliances) is now 10. For the festival of Diwali, this count will go up to 17. So, it’s a massive ramp-up… Around Diwali, you will see a private label play in one of the categories, but it’s not going to be in the bigger categories in large appliances such as TVs and refrigerators,” affirmed Karwa.
In June IOS reported, how Flipkart’s speed of delivery and ease-of-buying boosted the online marketplace’s large appliances sales.
Amazon to offer inbound pick-up service to sellers from 6 more states
Amazon has been expanding its warehouse capacity by setting up new fulfilment centres across India. The US-based ecommerce biggie announced that 7 new warehouses are coming up to cater large appliances & furniture category. In August 2017, Amazon launched its second fulfilment centre in the state of Uttar Pradesh. The remaining would be launched in subsequent weeks.
These fulfilment centres would not only help Amazon to streamline its supply chain, but also assist sellers in storing and delivering their shipments. The online marketplace has initiated inbound pick-up service of Fulfilment by Amazon (FBA) in Delhi, Tamil Nadu, Rajasthan, West Bengal, Madhya Pradesh and Uttar Pradesh. The addition of 6 new states would bring the total to 12 states where Amazon offers this service to FBA sellers.