Flipkart Company is coming with private label business under the name of smart buy to improve their margins. Under this umbrella brand they will sell electronics and home categories, by this April they are going to launch about 50 categories which are assured for high quality at affordable cost.
Flipkart previous brands like diggiflip, flipped and Citron was on the market until early this year. Adarsh Menon, head of the private label at Flipkart said Brands need to stay appropriate to consumers always. For that, we need to meet customer demands on quality specifications and price, at present Digiflip and Citron were not doing that.
In this Flipkart smart buy, you can find cables, chargers, and electronics and in home category they will include tiffin boxes, water bottles, jars, and containers. In coming months Flipkart will also sell home appliances, home décor, furnishing furniture and apparel. They are also planning to sell sheets, mixers and blenders from April under this umbrella brand
Adarsh said Consumer satisfaction is most important here, so the Flipkart team is researching from past months on different brands to provide great quality for the customers.
The order volumes and prices vary with categories, and Flipkart is targeting more than 70 percent on unbranded categories, and 15 percent on branded ones. Adarsh said that their private label would provide the best price for the quality.
The benefit of introducing this private label business is to provide quality products at affordable cost. Under this private label, the company will work with manufacturers very closely. So they provide bigger profit pool and let the marketplace do control quality
In FMCG products like the big basket, amazons have taken the private labels, and now Flipkart has also joined the private labels.