The e-commerce giant Flipkart is in plans to launch exclusive sales for more than 30 different global brands via its portal in 2015. The primary reason for this decision by the retailer is the increased benefit for the marketers from the online retail business in the country.
Flipkart has managed to sell millions of units of smartphones from Motorola and Xiaomi that were launching exclusively via the retailer. With the massive success in this segment, the vendor is planning to replicate the same principle across other categories as well.
Regarding this move Michael Adnani, Vice President for Retail at Flipkart stated that the selection of brands is based on the requirements of the Indian consumers and if they are getting the product that they desire at the pricing they want. He revealed that around 70 brands have approached Flipkart to establish exclusive tie-ups. Moreover, besides selling select mobile phones exclusive, the retailer has also been the sole marketplace for numerous other products such as fashion and apparel with brands including Diesel, Debenhams and Kenneth Cole Reaction having partnered with Flipkart.
As per marketers, the online channels will become the prime attraction among consumers as they do not include the overhead cost into the price. Considering this condition as a potential to achieve further growth, Xiaomi’s Vice President, Hugo Barra claimed that they will be launching newer models exclusively via Flipkart in the next year and the list also includes the Xiaomi Mi4.
Brands attract consumers by providing impressive discounts and the online retail is the platform for them to reach out to a maximum user base. Eventually, an electronic product that retails for around Rs 15,000 in a physical store can be purchased for Rs 12,000 online, claims the executive from Flipkart. Typically, consumers can save around 20 percent in select categories if they opt for online purchase.
Flipkart is in plans to set up new technology development centers with the first one to be created in Bengaluru soon. The retailer is also planning to scale up its IT infrastructure.
Not only Flipkart, even Snapdeal is partnering with brands for exclusive launches and it has got tie ups from auto maker Mahindra, Finnish tech maker Jolla and Tata Housing for online sales of their offerings this year.
