BENGALURU: Ecommerce giant Flipkart said the contribution of its private labels across 160 non-fashion categories doubled to account for 13% of overall gross merchandise value and the company is preparing to ramp up this business in 2019.
The company’s private labels are also attracting new customers with 12% making their first ecommerce purchases, said Adarsh Menon, vice-president of private labels for nonfashion categories at Flipkart. The platform also saw a 17x year-on-year spike in the number of customers shopping for its private label brands in 2018. “While 2017 was a period of testing of private labels for us, 2018 was about scaling up,” Menon said.
Flipkart currently has six private labels in its non-fashion categories, such as Flipkart Perfect Homes in furnitures, MarQ in large appliances and Billion, launched by cofounder Sachin Bansal. The company said products under its private label portfolio grew by 550%. Products under private labels on an average are aimed to be 15-20% cheaper than the market, Menon said, adding that Flipkart has been able to use customer insight and feedback to add features that they need.
Flipkart partnered with more than 100 factories, mainly in India but also in countries such as Malaysia and China as well for its private labels. Satish Meena, senior forecast analyst at Forrester, said that private labels help firms with better margins and more control on inventory and quality.
“We should also expect to see Walmart bringing their private labels through Flipkart,” Meena said. Flipkart said it was too early to discuss plans of Walmart bringing its private labels to the platform. In the fashion category, Flipkart launched a new in-house Western wear label, Ann Springs, on Thursday.
The development was reported by ETRetail.com