9 Dec 2016

Rishabh Tripathi

Flipkart Launches New Private Label ' Flipkart Smartbuy '

The E-commerce giant , Flipkart has launched its first private label under an umbrella brand called Flipkart Smartbuy. If reports are to be believed then the new move is aimed at pushing the company revenue so as to compete with its rival and another giant Amazon. 
The private label , Flipkart Smartbuy will range across 25-30 categories in electronics, electronic accessories and home plastics for starters. The private label will go live on Friday.
Over the next two - three months the e-commerce giant will launch its second private label brand which will range across a different set of categories including home decor, home furnishings, home appliances, and furniture.Till the end of April next year it plans to launch two umbrella brands and 40 product categories.

This move comes at a time when when the Flipkart's valuation took another low as a mutual fund managed by Morgan Stanley slashed the value of its flipkart shares by 38.2%. This move can also be seen as an answer to its rival Amazon who launched its two private label Symbol,a private fashion label, in order to boost sales and margins in the fashion category.
Flipkarts owned independent fashion marketplaces Myntra and Jabong already have several private labels to their name.
According to Flipkart, the products will be sourced globally from sourcing partners in China, India or Malaysia. “It will reduce returns as we offer good quality products; there will be a repeat value for consumers and it will also benefit sellers on the platform. Global companies like Walmart are also doing this as you can give the consumer a better quality product for a price point,” said Adarsh Menon, head of Flipkart’s private label.