Flipkart makes low key entry into private label with digital accessories under 'Digiflip'

25 Jul, 2012

India's largest e-commerce venture Flipkart.com has forayed into private label for digital accessories, such as laptop bags and camera pouches, under the brand Digiflip. Digiflip is starting with 10-12 SKUs, with laptop bags priced between Rs 500 and Rs 1,100, laptop skins ranging from Rs 350-Rs 400, camera bags priced at Rs 1,099 and camera pouches costing Rs 200-Rs 500.

It seems that the branded products in these segments are more expensive than those of Digiflip's. Similar but branded camera bags usually cost Rs 2,100-Rs 6,500 while good laptop bags may cost anything between Rs 700 and Rs 4,900. However, branded laptop sleeves seem to cost as much as Digiflip products.

Private label is a key area of interest for both offline and online retailers globally and also in India. Such products are sourced by retailers from third party suppliers and sold under fresh brands created by the retail chains.

Typically, these products are sold at a lower price, compared to the branded products, which help push volumes in the value-for-money segment. Such products also ensure higher margins. Apparel is one of the main categories where various e-commerce firms have launched their private labels.

Talking to Techcircle.in, Ankit Nagori, VP (retail) of Flipkart, said, "We have been there in the market for some time now and given our large customer base, we have tried and studied customer behavior. Then we learnt the need to come up with products which will bridge the price and specification gaps for products through Digiflip."

The e-tailer will also foray into other digital accessories such as cables, chargers, adapters and more. According to Nagori, the company wants to do 25-30 per cent of its overall business (within the digital accessories category) through Digiflip by the end of the current financial year.

Digiflip merchandise also comes with a one-year limited warranty and one can avail it by contacting the Flipkart customer support while ordering the product.

Nagori said that Flipkart has no immediate plans to introduce private labels in other big product categories.

Flipkart, which has been aggressively expanding into various product categories over the past one year, is not the first e-commerce player to launch private label, but its moves are most keenly watched, given its depth of category penetration. Keep track of this space to find out when and how Flipkart is expanding its private labels to other categories.

(Edited by Sanghamitra Mandal)