Amazon India plans to expand its private label business to fend off rival Flipkart: Report

Amazon India is planning to expand or launch more private labels in order to compete with Flipkart.

  • Published: February 14, 2018 8:17 PM IST

Amazon India, the leading e-commerce company in the country, is planning to scale up its private label business. The company is planning to launch brands in new categories this year as it continues to close the gap with local rival and market leader Flipkart.

In an interview with Mint, Manish Tiwary, Vice President, Amazon India told that the company will aggressively expand its private label this year with potential launch in new categories. He declined to specify which segments his company plans to launch new private brands but the move will counter Flipkart, which has also made an aggressive push into private labels over the past year.

Amazon India is said to be following on Flipkart’s playbook and will launch a separate private label brand for certain large appliances as well as smaller appliances. “We have selection gaps in every category…our large vendors on the private labels side, we’ll keep on filling the gaps using them,” Tiwary told Mint.

Amazon has so far launched at least five private label brands on its platforms with Symbol and Myx in the fashion and apparels segment, Solimo in home furnishing or small appliances segment, Tenor in smartphones. It also has AmazonBasics, an in-house brand with global appeal catering to electronics and accessories.

Amazon says it is exploring options to either expand or launch new products under existing in-house brands such as Solimo and Myx. “I have more than enough to do with Symbol, Myx, Solimo and Tenor… let’s take Solimo as an example — we have 400 ASNs (Amazon’s in-house lingo for stock keeping units) and we’ll add at least more than double the number of ASNs across categories,” said Tiwary.

Amazon’s track record in the private label space seems to have been mixed so far. It’s brands like AmazonBasics have a global appeal while some other brands have been successful in segments such as fashion and smartphones but it continues to lag competitors. Flipkart, meanwhile, has the expertise of Myntra, which is known for creating fashion brands with its private labels to specifically target fashion seekers.

Amazon India and Flipkart are engaged in a rivalry in the online segment and both are aiming to capture that last user. Flipkart has a brand recognition as a home-grown retail giant but Amazon has its global moolah and a network of ASNs to back itself up.

  • Published Date: February 14, 2018 8:17 PM IST