Ecommerce platform Flipkart has launched its first private label business under an umbrella brand called Flipkart Smart Buy. The move is directed towards pushing the revenues of the company, as per a report by Mint.
The ecommerce giant will also launch its second private label in early 2017, and will target companies like electronics, accessories, home decor, and furniture, a source close to the development said.
As per an official statement, the private label, Flipkart Smart Buy will range across 25-30 categories in electronics, electronic accessories and home plastics for starters, said Adarsh Menon, Flipkart’s Head of private labels. “The private label will go live Friday,” he added.
This move comes at a time when Flipkart’s valuation took another beating as a mutual fund managed by Morgan Stanley slashed the value of its Flipkart shares by 38.2%. The recent markdown pegged its valuation at $5.54 Bn.
“Over the next two-three months, we will launch our second (private label) brand, which will play in a different set of categories in home decor, home furnishings, home appliances, and furniture. That should take us through to April —two umbrella brands and maybe 40 product categories,” Menon added.
Earlier in 2014, Flipkart launched private label named Citron that offered products under home appliances and personal healthcare category. That was the third private label by Flipkart. Previously, it had launched Digiflip in consumer electronics and Flippd in apparels. In September this year, it’s rival ecommerce player Amazon India also launched Symbol, a private fashion label, in order to boost sales and margins in the fashion category.
Flipkart’s independent fashion marketplaces Jabong and Myntra already have several private labels.