Exclusive: Flipkart forays into private label, launches DigiFlip brand
Flipkart has entered the league of private label through ‘Digiflip’, a brand that sells digital accessories such as laptop bags, sleeves and camera bags & pouches. Currently it offers 10-12 SKUs in each sub category; however it would be increasing its offering by inculcating more digital based accessories within Digiflip.
Speaking about the USP of Digiflip, Ravi Vora, Marketing Head, Flipkart said” Digiflip USP lies in its product offering and we value for consumer money without compromising on style and quality in this category. At present we have started with laptop and camera bags but we are having roadmap to foray into other categories in overall digital accessories category”.
Throwing light on thoughts behind launching a private label in digital accessories segment, Ankit Nagori, VP, Retail Flipkart mentions that “given the large scale of our customer base and the knowledge we have about their buying behavior, we felt we could provide more options that met their needs better. The insights we gather from our shoppers will help bridge the product specification and pricing gaps that exists in the current selection available on the website, through DigiFlip.”
Answering the query about Flipkart’s plan to launch its in-house label of apparels. Vora mentions that as of now, Flipkart doesn’t have any concrete roadmap specifically for launching private label in apparels, however they do have a plan for in-house brand portfolio. Currently, Digiflip offers price range of INR 500 to 1100 in laptop bags, 200 to 500 in camera and around 400 in laptop sleeve. Through Digiflip, Flipkart wants to sell 25 to 30 percent of its overall digital accessories sale by the end of this financial year.
Digiflip merchandise also comes with a one year limited warranty which can be availed of by contacting the Flipkart customer support while ordering the product. The 30 day replacement policy is also available on all Digiflip products adding to its convenience.
From our earlier coverage of Why Indian etailers are being so bullish about private labels :
The major reasons for etailers getting into private label seem to be margin as most of the etailers are selling branded products at a very thin margin and importantly, are passionate about creating their own product line. By selling branded products etailers usually make 10 – 15 percent margin; however in private labels it is as high as 30 to 60 percent.
- For Flipkart, this could be a MVP (minimum viable product) approach to test feasibility of its private label (and also a test to explore optimized monetization of its supply chain, which the company has built over the last few years).
Update: Pi reader, Bijay Agarwal shared an interesting observation that the domain, DigiFlip.in was registered by Sachin Bansal on June 11th.