Private Label brands can completely revolutonized India e-commerce war

Private Label brands can completely revolutonized India e-commerce war

Private Label brands can completely revolutionized India e-commerce war.


Lalit Bisht who lives in a small town in the northern part of India in Uttarakhand believes that ordering t-shirts and Roadster jeans from online clothing stores like Flipkart and Myntra is an easy task and even though it might take a week or so to deliver he believes it’s worth the wait.
There are literally thousands of people who want to look cool and hip but don’t have the means to afford stuff with big brand names.  The purchase of 20 Roadster item by Bishit from online store Myntra is actually a symbol of appeal from millions of shoppers across India who budget friendly alternatives for stuffs like clothes and smartphones.

So far the e-commerce wars between different e-commerce related companies were based on sale and discounts on various electronic products however  Walmart  has changes the game  in India by purchasing  Flipkart which is a $16 billion  online retailer. Now the war is shifting towards private label brands.
Both Flipkart and Amazon have been burning through cash to offer those discounts and a bigger push into private labels could help them make money as they control the pricing, marketing and supply chain of these brands, say analysts.
The retail analysts also say that brands and labeling will attract the price-sensitive customer and create a customer base equally for old customers as well for the ones who are trying the online shopping for the first time.

The brand called “Billion”

A brand with the name “Billion” was launches by Flipkart just last year which sold stuff from clothes to smartphones to air conditioners. Flipkart is also the owner of furniture selling brand called Perfect and electronics brand naems MarQ. Similarly, Myntra owns 13 private labels and create profit through them.
Amazon is also gradually making its move into private brands.  AmazonBasic is a global brand where you will find everything from women and men’s brands clothing, every kind of electronic, stationary, dry fruits, bed sheets and much more in a budget friendly cost.
In an interview with Amazon India head Amit Agarwal he said. The role of private brands for us is to fill in specific need, gaps that are not being serviced. We’ll keep looking for these opportunities.”
According to another retailer that want to stay anonymous said that there is a whole lot of potential for private labels of making a profit as most retailers sells on price three or four times higher than the factory gate cost. There are some who think companies like Amazon and Flipkart can really take these private Indian brands international.
Binny Bansal, Flipkart’s co-founder said, “That’s something we’ll be looking at,” while taking about the popularity of its private brands with the Indian diaspora around the globe where Walmart also operates.
Arkansas-based retailer, Bentonville is making Indian private label as its key focus according to a source. It is an e-commerce market signed by Morgan Stanley that has been predicted to grow into 200 billion dollar worth in next ten years.
The managing director of GlobalData Retail said, “The U.S. private label for Walmart has always been an entry price, it tends to be at the lower end of the pricing spectrum, I think that’s how it will probably work in India as well,”

The pathway to Profit

Flipkart which was founded by two former Amazon employees is now one of India’s top firms in e-commerce and the credit goes to the deep discount on electronic products when launched.
Analysts warned that flash sales especially on electronic products can badly hit profitability in the long run regardless of the fact that they do create hype about the products and help move the inventory.
There was a reported net loss of over 87.71 billion Indian rupees by Flipkart last year. Amazon loss increased to $622 billion in only the first half because of its expansion in India. Amazon has already pledged an investment of $5 billion in India.
According to a source Flipkarts push in private label can be expedited by Walmart to make it counter and differentiate from Amazon which is growing to be one of the fastest growing companies in India than anywhere else in the world.

Private Label brands can completely revolutionized India e-commerce war.

Lalit Bisht who lives in a small town in the northern part of India in Uttarakhand believes that ordering t-shirts and Roadster jeans from online clothing stores like Flipkart and Myntra is an easy task and even though it might take a week or so to deliver he believes it’s worth the wait.
There are literally thousands of people who want to look cool and hip but don’t have the means to afford stuff with big brand names.  The purchase of 20 Roadster item by Bishit from online store Myntra is actually a symbol of appeal from millions of shoppers across India who budget friendly alternatives for stuffs like clothes and smartphones.
So far the e-commerce wars between different e-commerce related companies were based on sale and discounts on various electronic products however  Walmart  has changes the game  in India by purchasing  Flipkart which is a $16 billion  online retailer. Now the war is shifting towards private label brands.
Both Flipkart and Amazon have been burning through cash to offer those discounts and a bigger push into private labels could help them make money as they control the pricing, marketing and supply chain of these brands, say analysts.
The retail analysts also say that brands and labeling will attract the price-sensitive customer and create a customer base equally for old customers as well for the ones who are trying the online shopping for the first time.

The brand called “Billion”

A brand with the name “Billion” was launches by Flipkart just last year which sold stuff from clothes to smartphones to air conditioners. Flipkart is also the owner of furniture selling brand called Perfect and electronics brand naems MarQ. Similarly, Myntra owns 13 private labels and create profit through them.
Amazon is also gradually making its move into private brands.  AmazonBasic is a global brand where you will find everything from women and men’s brands clothing, every kind of electronic, stationary, dry fruits, bed sheets and much more in a budget friendly cost.
In an interview with Amazon India head Amit Agarwal he said. The role of private brands for us is to fill in specific need, gaps that are not being serviced. We’ll keep looking for these opportunities.”
According to another retailer that want to stay anonymous said that there is a whole lot of potential for private labels of making a profit as most retailers sells on price three or four times higher than the factory gate cost. There are some who think companies like Amazon and Flipkart can really take these private Indian brands international.
Binny Bansal, Flipkart’s co-founder said, “That’s something we’ll be looking at,” while taking about the popularity of its private brands with the Indian diaspora around the globe where Walmart also operates.
Arkansas-based retailer, Bentonville is making Indian private label as its key focus according to a source. It is an e-commerce market signed by Morgan Stanley that has been predicted to grow into 200 billion dollar worth in next ten years.
The managing director of GlobalData Retail said, “The U.S. private label for Walmart has always been an entry price, it tends to be at the lower end of the pricing spectrum, I think that’s how it will probably work in India as well,”

The pathway to Profit

Flipkart which was founded by two former Amazon employees is now one of India’s top firms in e-commerce and the credit goes to the deep discount on electronic products when launched.
Analysts warned that flash sales especially on electronic products can badly hit profitability in the long run regardless of the fact that they do create hype about the products and help move the inventory.
There was a reported net loss of over 87.71 billion Indian rupees by Flipkart last year. Amazon loss increased to $622 billion in only the first half because of its expansion in India. Amazon has already pledged an investment of $5 billion in India.
According to a source Flipkarts push in private label can be expedited by Walmart to make it counter and differentiate from Amazon which is growing to be one of the fastest growing companies in India than anywhere else in the world.

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