US-based global retailer Walmart has continued its expansion in India since it acquired India’s leading e-commerce startup Flipkart. Walmart is now looking to leverage Flipkart platform to cross-sell private brands.
The retailer is further looking to use the e-commerce giant’s technology and analytics expertise to help them with grocery retailing.
Krish Iyer, chief executive at Walmart India, said, “Currently, we are selling our private brands only in our stores but don’t see any reason why we can’t sell it outside our stores. With Flipkart, there is an option. Flipkart is a platform and there are sellers on it, and when you talk about grocery, it’s about getting the right sellers to complete the mix. They are very good at technology, analytics and customer relationship management.”
For Walmart India, private brands, Right Buy and Member’s Mark, account for roughly 6-7% of its overall sales, while the company gets nearly a third of its revenues from own labels in the US.
India allows 51% FDI in multi-brand retail, while 100% FDI is allowed in cash-and-carry wholesale ventures that sell grocery and other products to business entities such as neighbourhood stores.
Owing to regulations, Walmart cannot sell its own brands directly to end customers or list them directly on Flipkart’s platform. Walmart’s private labels are being sold at kirana stores, which have to buy them from Walmart’s Best Price wholesale stores.
Flipkart is already present in a host of private label categories across electronics, appliances, and accessories under Billion brand name, while its fashion arm Myntra‘s portfolio include Roadster, Dressberry, and Anouk, among others.
As Walmart has expanded its presence from offline stores to the online market, with the acquisition of Flipkart, more players are exploring the omnichannel model to enhance customer experience.
Earlier, it was reported that V-Mart is looking to explore omnichannel model to expand its business.