Flipkart has right now introduced the launch of its first private label within the fashion class — Divastri, which goals to faucet into the demand for ladies’s ethnic put on.
With the launch of this Divastri private label, the corporate is focusing on unstitched clothes class. Up to now, the class has been principally served by lengthy tail retailers in a bid to regulate high quality and pricing within the phase.
E-commerce corporations are actually wanting ahead to constructing their very own private label manufacturers. The motive being that it earns a bigger gross margin than merchandise offered by different distributors, even at a reduction.
Rishi Vasudev, VP of fashion (retail), Flipkart, mentioned,
We've some primary line of private label however Divastri can be our first brand within the fashion house. We've chosen over 20 sellers, a few of whom double up as producers to licence the brand and promote on the Flipkart fashion market. We've began with a choice of ,500 and can quickly ramp it as much as 2,500.
Flipkart says that fashion accounts for greater than 60% of all items offered on the e-tailer’s platform. Among the many 60%, practically half the items offered are within the ethnic put on and Indian modern put on class.
Vasudev says that Flipkart can be introducing new labels within the coming months as a part of the fashion vertical. The present line will meet high quality requirements with a uniform design story for its choices.
Whereas that is the first private label brand for Flipkart, Myntra — the fully-owned subsidiary of Flipkart already has fourteen private label manufacturers, together with Roadster, All About You, Mast & Harbour, and Moda Rapido amongst others.
It just lately acquired HRX by Hrithik Roshan, which is already a ₹120 crore brand. Myntra expects to shut FY2017 with 21 per cent of its revenues from its private-label manufacturers.
Final 12 months, Ananth Narayanan, CEO of Myntra mentioned that the corporate plans to scale up all its private labels, particularly ethnic put on, and promote a few of its labels on Jabong, which Flipkart acquired in July for near $70 million.
Flipkart’s greatest rival Amazon India has additionally launched its personal private label brand — Symbol, in September final 12 months. It was the first private label among the many six manufacturers that it plans to launch.
In accordance with the report by RedSeer, the share of fashion in Flipkart’s gross merchandise worth has remained static between the first quarter of 2016 and that of 2017. It additionally indicated that fashion made up 20-23% of the general e-tailing market in 2016.