Flipkart launches private label business `Flipkart Smart Buy`

Flipkart will launch a second private label brand in 2017 and mostly target categories such as electronics, accessories, home decor and furniture with the two brands, dealstreetasia.com reports. Flipkart Smart Buy will span 25-30 categories in electronics, electronic accessories and home plastics for starters, said Adarsh Menon, Flipkart’s newly appointed head of private labels, the source cites.

The private label is launched in a period when India undergoes demonetization, fact which has negatively impacted the companys sales. The private label push from Flipkart comes months after it was initially scheduled. After returning to Flipkart to engineer a turnaround in its fortunes, current business head and former Tiger Global Management executive Kalyan Krishnamurthy deferred the ecommerce firm’s renewed attempt to build and launch a private label business in August 2016.

In May 2016, chief executive officer Binny Bansal had proposed building a large private label business, given the significant margins these products offer. In October 2016, after the successful conclusion of the festive season sale, Flipkart resumed its efforts to launch the private label business, the source cites.

Flipkart’s independent fashion marketplaces Jabong and Myntra already have several private labels.