Flipkart is likely to re-launch its own private label business, this time with some tweaks

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India’s largest online marketplace, Flipkart, is going to re-launch its private label business model under which it will come out with in-house brands in various categories such as mobile, jewellery and fashion accessories.

The earlier private-label model did not do well and under the new plan Flipkart will license its private-label brands to sellers who can meet quality manufacturing benchmarks and product specifications.

Flipkart had launched its private-label business three years back with Digiflip in consumer electronics, Citron in home appliances and Flippd in apparels.

They were not successful following which Flipkart stopped selling Digiflip tablet computers.

For this new plan, Mausam Bhatt, who was senior director- mobile commerce and online marketing at Flipkart, will be responsible.

"Flipkart will create brands and those brands can be licensed to various sellers, based on specifications directed by the company. The ownership of the brand will rest with Flipkart," ET quoted one of the sources as saying.

The idea behind private labels is to increase profit and plug gaps in product categories as in electronic products margins can be as high as 20 per cent, as per experts.

Even Amazon sells its own brand of computers, mobile accessories and other products through AmazonBasics.
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