In July of 2012, Flipkart launched its own first private label DigiFlip for digital accessories and introduced camera bags and laptop backpacks under that brand name. Fast forward to December 2013 and now they have launched their second private– Flippd.
Flipkart’s Flippd is a apparels and lifestyle brand that offers products in 2 categories – Apparels & Footwear.
The launch of Flippd come close to heels of Myntra’s launch of it’s own private label HRX, an apparels brand that has been introduced with exclusive tie-up with Bollywood actor Hrithik Roshan.
One thing is clear – Flipkart understand Indian customers very well by now – they process lakhs of orders every day, which gives them a clear insight into the pulse of market. They have a very good idea about what Indian consumers want and at what price point. Introduction of private label in apparels will not only allow them to price the products competitively, but also help them command higher margins compared to procuring it from outside market.
Under Flippd brand, Flipkart currently has over 400 products of apparels and footwear, all priced quite competitively as compared to the market prices.
Flipkart Looking At Acquiring Private Labels Like YepMe, Zovi
While creating your own brand is one way to go, acquisitions are another route that no doubt Flipkart must be currently exploring. According to ET, Flipkart is actively considering acquiring privatebrands like YepMe and Zovi. Acquisition of these private labels will allow Flipkart to scale very quickly in terms of number and range of their own products on offer.
Although Sachin Bansal, co-founder of Flipkart declined to comment on these acquisition rumours, he told ET, “2014 will be an important year for us. This will mean looking at private labels and also opening up our marketplace to more and more sellers”
Large e-commerce sites in India like Snapdeal, Flipkart, Myntra and others are now all trying to move towards profitability. While last couple of years, it was all about “customer acquisition”, it seems 2014 will be more about profitability and consolidation in general for the ecommerce players in India. And having their own private labels seem to be the way to do!
Do let us know what you think about it!