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Published
May 23, 2018
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Flipkart to increase private label product ranges

Published
May 23, 2018

Flipkart is turning its attention to its private labels to increase profit, especially in its fashion and furniture departments.

Flipkart is turning its attention to its private labels to increase profit - Flipkart- Facebook


As Flipkart’s online fashion portal Myntra has recently reported that its private labels such as HRX and Roadster currently account for around a quarter of online sales, the business is experiencing growth in its private labels. Flipkart, currently being acquired by Walmart, is also aiming to expand its private label business which has higher profit margins due to reduced logistics costs.

One department in which Flipkart is looking to expand a private brand is homeware. Perfect Homes is Flipkart’s furniture and homeware private label and it is expected to account for half of its overall furniture revenue by the end of the current financial year in March 2019. In order to achieve this, the brand’s product range is being expanded as well as brand partners.

Perfect Homes was launched last year and Adarsh Menon, Flipkart’s Head of Private Labels and Electronics, told the Press Trust of India: “We are expanding our range to 250-300 SKUs from about 150 right now and our target is to play across 20 categories in the segment.” As the homeware market is largely unorganised in India, Flipkart aims to tap into a hole in the market. Menon also stated that Flipkart plans to double its partners for the brand over the course of the coming ten months.

Perfect Homes products are sold on Flipkart by licensed sellers who pay a fee for the licence. This is the same practice as for Flipkart’s private label fashion brands. Flipkart says that its Perfect Homes products are around 30 percent cheaper than similar options from other brands.

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