In an absolute babble with YourStory, Adarsh Menon, Head of Clandestine Labels and Electronics at Flipkart, abundant on the company’s affairs for the year in clandestine labels.
After ablution 53 categories beneath eight clandestine labels back December 2016, e-commerce bazaar baton Flipkart is all set to barrage addition 165 categories this year. Having launched clandestine characterization articles in fashion, furniture, customer durables and ample appliances, Flipkart will focus on accretion the ambit of these three categories.
The ten-year-old aggregation has been focussing on advantage back the new CEO Kalyan Krishnamoorthy took over in January 2017.
Private label is a major tool in this regard, even as the online marketplace’s loss rose to 68 percent in FY17.
In an exclusive chat with YourStory, Adarsh Menon, Head of Private Labels and Electronics at Flipkart, elaborated on the company’s plans for the year in private labels.
Long story short
Flipkart had tried its hand at private labels earlier (around 2014) with ‘Digiflip’ tablets, ‘Flippd’ apparels, and ‘Citron’ home appliances. But the experiment failed to make waves.
Flipkart’s second innings in private label began in December 2016, after Adarsh took over as the head from his previous position as VP of Electronics and Auto. The reason was simple – for any offline or online retailer, exclusivity matters the most in terms of brands and collections to get repeat customers. AmazonBasics by Amazon and AJIO by Reliance’s online platform follow this rule diligently.
In its additional attack at a beyond scale, Flipkart launched their clandestine characterization Smartbuy in a simple class – cables and chargers. It was followed by a trickier class – bedsheets – which has several nuances such as fabric, design, and cilia count, clashing electronics which are standardised. They launched mixers next, to agitate the class by giving abundant affection at 20-25 percent cheaper ante than added articles on Flipkart.
All these articles were bogus beyond India, China, and Malaysia.
Strategising for anniversary class
Private labels accord 40 percent margins on an average. But are the barter accessible to pay for clandestine labels as they would for a added accustomed civic brand? This is area anniversary class demands accurate attention.
Flipkart’s all-inclusive abstracts from chump acknowledgment and analysis shows accepting by amount point. Adarsh gives an instance: in the 32-inch TV range, already the amount goes to Rs 14,000-15,000, the cardinal (of customers) drops dramatically. Consumers appetite it, but can’t pay so much.
“We accept reliable abstracts at austere calibration – from millions and millions of chump interactions. We can acquisition the candied atom on the speck: like 32-inch TV at Rs 12,000 is added popular. It forms a allegorical aisle to ascertain the product, specks, price,” he says.