BENGALURU: Flipkart is planning to start private labels in the home and furnishings category early next year. The objective is to make the segment one of the company’s growth drivers next year.
Rival Amazon has already started pushing private labels in the fashion, home and kitchen segments. Its private labels include Solimo and Symbol, for the home and fashion segment respectively.
Amitesh Jha, head of the home category at Flipkart, said the private labels will be in areas like small home appliances, consumer electronics and appliances, home decor and furnishings, home improvement tools and furniture. “This is one segment which has not been disrupted at all, be it by online or offline players. Furniture, for example, is still a pain point for consumers regardless of the medium on which it is bought. We have supply chains specific to the requirements of the different items,” Jha said.
The core focus will be on large appliances, TV, household & kitchen items and home furnishing.
The home category contributes about 15% of the company’s revenue and the plan is to grow this significantly. Furniture retailer Urban Ladder has also started selling its products on Flipkart, which gives the latter a wider range of products to offer.
Flipkart’s move also puts the company in direct competition with the likes of BigBazaar, one of the largest offline players in the home and furnishings segment. “Offline is always the primary competition. But it is fragmented. No one will have our scale in terms of sourcing and customers,” Jha said.
Flipkart has been toying with the idea of private labels for some months now. Private brands typically offer advantages such as stronger grip over product sourcing, design and bigger margins. If implemented well, private labels help build a stronger customer base and loyalty for the mother brand.