As the online merchant looks to strengthen its headship position in the fashion and lifestyle category, Flipkart is entering into exclusive licensing contracts with brands like Provogue, Swiss Military,Carlton London and Chemistry, among others.
The decision is intended at achieving superior command on the product range and pricing of these brands, a company executive said. Flipkart, which also maintains Myntra and Jabong, proposes to manufacture some of the products for these brands which will be accessible solely on its platform.
“ These partnerships would ensure that a broader range of products is listed under Flipkart-Assured, its newly launched programme that guarantees an overall better consumer experience and quality”, Rishi Vasudev, VP at Flipkart Fashion, said.
“Flipkart has also inked an exclusive brand tie-up with Peter England for PE shoes and Flying Machine,” Vasudev said. “We are outsourcing the manufacturing of these products to different partners. Footwear has very high penetration online — close to 35% of the organised market. It has become the main channel for most brands to sell, so we have launched this exercise with footwear,” he said.
This recent move by the country’s largest e-commerce competitor comes at a time when it is approaching the festive season.
Fashion being the top two categories for the Bengaluru-based company. It lately attained Jabong for $70 million, coating its clear supremacy in the online fashion market.
“Flipkart Fashion dominates the online space in footwear with over 45% share. This category is three times of any other horizontal player and twice of any vertical player. Even in the unbranded segment, there are many sellers that derive around 50% of their total business from Flipkart alone. Sellers like Biosport, Advance Gear, Knight Ace have shown 4-8 times growth in the last six months. In fact, several sellers have seen such strong growth that they have become exclusive partners with Flipkart (like Biosport),” he added.
Flipkart aiming to fight Amazon in its game
Fashion currently registers about $1.5 billion in gross merchandise value, for the e-tailer. GMV is known as the overall sales on an online marketplace, excluding discounts and returns. Flipkart has witnessed its sales decaying over the past few months and is directing to put its best foot forward to increase them, particularly when Amazon is intimidating its leadership position in the domestic market.