Flipkart to target middle-income segment with brand ‘Billion’
Flipkart co-founder and executive chairman Sachin Bansal may have lost his billionaire status after the e-tailer’s valuation fell in its latest funding round, but his love affair with the word ‘Billion’ continues as he plans to develop a new brand Billion.
Sachin Bansal is planning to develop a budget brand titled ‘Billion’ across different categories to cater to the middle-class segment from tier 2 and tier 3 cities, the Mint reported citing sources.
Bansal’s Billion brand will target the middle-income segment from these cities and offer different set of products relevant to smaller cities and towns.
Flipkart will also look to give its private labels a push through the ‘Billion’ brand to increase its revenue as private labels give better returns than the goods sold by sellers on the marketplace.
E-commerce companies are all turning to the lesser known cities of India for its next phase of growth. Flipkart’s rival Amazon is also banking on the middle India market and banking on a similar strategy to drive sales.
The ecommerce market is expected to grow from $26 billion (Rs 1.7 lakh crore) currently to $103 billion (Rs 6.8 lakh crore) by 2019-20.
Private labels and in-house brands could help e-commerce companies reel in new cost-conscious customers, especially from smaller towns.
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