Flipkart
is lavishing attention on a fast growing category — large appliances —
by setting up a specialised logistic network to entice more customers
and encourage newer and lesser known brands with limited cash to set up
an online presence.
The category, the third largest for Flipkart, after electronics and apparel includes products like televisions, refrigerators and air conditioners, all of which are selling at a fast clip on the online marketplace.
"We have redesigned and set up a dedicated in-house supply chain that (will handle), installation and customer experience," said Amit Bansal, head of the large appliances business at Flipkart.
Among the top-selling brands on the platform are Vu, BPL, Sansui and Whirlpool. According to Bansal, Flipkart is able to negotiate a better price for the customer by integrating closely with the brand and in some cases using its data to help shape strategy and bring better products for the market.
"We import directly from them (brands), help them distribute through our centres, provide installation service and help in brand marketing," he said.
Also, competitive pricing has helped grow business from smaller towns and cities, with almost half of the business coming from non-metros. The average ticket size for larger appliances, which the company defines as any appliance which is physically very large in size or that needs a post-delivery installation, is Rs 25,000.
Over the last two years, Flipkart and several other e-commerce companies have faced heat from offline retailers and top brands for selling at a discount and diluting so-called brand image for some of the high-end brands.
Flipkart then started tapping more affordable technology brands and forged partnerships to sell those brands. However, Bansal said: "Larger brands which earlier refused any e-commerce presence, are now warming up to online retailing and holding conversations to sell on the platform."
According to Goldman Sachs the e-commerce marker is estimated to expand to $36 billion in 2016-17 from $11billion in 2014-15.
The category, the third largest for Flipkart, after electronics and apparel includes products like televisions, refrigerators and air conditioners, all of which are selling at a fast clip on the online marketplace.
"We have redesigned and set up a dedicated in-house supply chain that (will handle), installation and customer experience," said Amit Bansal, head of the large appliances business at Flipkart.
Among the top-selling brands on the platform are Vu, BPL, Sansui and Whirlpool. According to Bansal, Flipkart is able to negotiate a better price for the customer by integrating closely with the brand and in some cases using its data to help shape strategy and bring better products for the market.
"We import directly from them (brands), help them distribute through our centres, provide installation service and help in brand marketing," he said.
Also, competitive pricing has helped grow business from smaller towns and cities, with almost half of the business coming from non-metros. The average ticket size for larger appliances, which the company defines as any appliance which is physically very large in size or that needs a post-delivery installation, is Rs 25,000.
Over the last two years, Flipkart and several other e-commerce companies have faced heat from offline retailers and top brands for selling at a discount and diluting so-called brand image for some of the high-end brands.
Flipkart then started tapping more affordable technology brands and forged partnerships to sell those brands. However, Bansal said: "Larger brands which earlier refused any e-commerce presence, are now warming up to online retailing and holding conversations to sell on the platform."
According to Goldman Sachs the e-commerce marker is estimated to expand to $36 billion in 2016-17 from $11billion in 2014-15.
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