Flipkart: private label and new pricing model

Date : 14 December 2016

India’s largest ecommerce company Flipkart plans to launch its first private label range and it looks to introduce a discount pricing model for consumers buying multiple items.

Flipkart Smart Buy private label range

Flipkart has launched its first private label range under a brand name Flipkart Smart Buy, as part of a push to improve margins. The new range will include 25-30 categories in electronics, electronic accessories and home plastics for starters, said Adarsh Menon, Flipkart’s newly appointed head of private labels. A second private label brand is scheduled to launch early next year and mostly target categories such as electronics, accessories and home décor.

Flipkart’s entry into private labels comes at a time when its major rival Amazon is also making strides with private labels.

Multiple buy pricing model

The new pricing strategy Flipkart plans to introduce encourages shoppers to pick multiple items that can be shipped in one box to save on delivery charges. It follows a successful model Jet.com developed in the US.

Jet.com, which was acquired by retail giant Walmart for US$3.3b earlier this year, pioneers the concept through its Smart Cart service. Walmart is also in talks with Flipkart to buy a minority stake in the company. Amazon is their common rival in India.

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