Flipkart is Bringing Back its Own Labels like Digiflip, Citron & Flippd, But With Trusted Sellers!

Do you remember Flipkart’s take at consumer durables, under the banners of Digiflip, Citron and Flippd? Chances are you have not heard of these brands, and that is because these set of products from the Bangalore-based company failed to take off well in their initial days.

However, according to reports, Flipkart is all set to re-launch these brands, and the products that include apparels, consumer electronics and jewellery, with a twist. The company wants to ensure only trusted sellers and top-notch merchants develop these products, considering the first stint did not work out well.

Digiflip brand houses consumer electronics like tablets, Flippd is a range of apparels and Citron hosts home appliances. The company is also planning to launch its own range of jewellery and fashion accessories.

According to a report by ET, “Flipkart will create brands and those brands can be licensed to various sellers, based on specifications directed by the company. The ownership of the brand will rest with Flipkart.”

Once shy, twice bitten?

In this age of fierce competition on Flipkart’s marketplace itself, it does not seem very logical to launch its own range of products for consumers. Especially considering there is nothing extra that these products bring to the table, Flipkart might start making losses if the second innings does not pick up pace.

On the other hand, it is a very bold move for Flipkart to get into consumer business, and take on AmazonBasics, Amazon’s own brand of electronics bags and computer accessories. Flipkart’s range is expected to be priced reasonably and competitively compared to its competition.

One of the main reasons of the re-launch is also the fact that private labels have margins 20% higher than other branded products. To get good margins on its own labels, this time Flipkart will have to reinvent its sales pitches and improve volumes.

Very smartly, Flipkart is pushing for private labels when it won’t have to manage the supply chain and inventory of these brands. It is synonymous to Google’s Nexus smartphones, that do not house the hardware developed by Google, but continue to be owned by Google.

This time even if Flipkart fails, it won’t have to bear losses as much as it did the first time. Let us wait for a couple of months before the launch becomes official and we’re able to get our hands on the private labels.