In a bid to improve margins and enter a space which its rivals have already scratched, e-commerce major Flipkart has launched its first private label business under an umbrella brand – Flipkart Smart Buy.
Starting today, the umbrella brand will start selling electronics and home categories before going live with other 25-30 categories going forward, said various news reports.
The marketplace also plans to launch a second brand by March which will retail furniture, small appliances, home décor and furnishings.
The launch of private labeles seems crucial for Flipkart as its arch-rival Amazon India has already entered this segment with three launches; Symbol and Myx for men’s wear and women’s ethnic clothing and Solimo in the small appliances and kitchenware category.
Infact, Flipkart’s independent fashion marketplaces Jabong and Myntra already have several private labels. Myntra especially has been aggressive on launching private labels and gets close to 25 per cent of its business from these labels.
According to a news repot, the PL push from Flipkart comes months after it was initially scheduled for August.
Flipkart deferred the launch after the company decided to direct available resources to make the Big Billion Day sale a success.
The PL push is currently been headed by Adarsh Menon, who was appointed last week after Flipkart’s former head of private labels Mausam Bhatt, along with senior vice-president of engineering Peeyush Ranjan, resigned from the company.