India’s largest e-commerce firm Flipkart has launched a new private label brand for its key large appliances category, amid a broader internal push from chief executive Kalyan Krishnamurthy to build out a new billion-dollar business from private labels and simultaneously improve margins.
The new brand called MarQ comes at a time when Flipkart is looking to reduce its dependence on the smartphone business and cement its position at the top of Indian e-commerce, after winning the Diwali festive sale battle against arch-rival Amazon India. Flipkart will also expand its private label push to 72 categories over the next few months
Flipkart is not looking to launch a private label in its flagship smartphone business, which contributes well over 60% of the online retailer’s gross monthly and annual sales. He added that Flipkart would also aggressively grow out its newly-launched private label brand in the furniture category called Perfect Homes.
Flipkart launched its first private label business under the umbrella brand called Flipkart SmartBuy, as part of a push to improve margins. Since then Flipkart has launched at least four other private label brands, including Divastri in the fashion category. Separately, Flipkart founder and chairman Sachin Bansal also separately created a new private label business called Billion.