Flipkart plans image makeover of fashion biz
Flipkart’s fashion business, which is aiming to grow sales by 60-65% this financial year and touch $1.7 billion in terms of gross merchandise value (GMV) by March 2019, has undertaken a rebranding exercise as part of a broader strategy to stand out as a premier online fashion destination and help differentiate itself from other online retailers.
Since Flipkart started selling fashion in 2012, it has aimed to be a mass-market player, catering to all sections of online shoppers across big and small cities.
Flipkart’s acquisition of Myntra in 2014 further helped boost its position as the leading online fashion retailer in the country. Flipkart also kept the Myntra brand alive as it catered to a premium section of buyers, selling more expensive fashion.
Now, under chief executive Kalyan Krishnamurthy, Flipkart is aiming to differentiate itself from rivals such as Amazon India and stand apart as a premium fashion player, with its new rebranding project to make itself a so-called online fashion capital.
“Usually, you would hear of fashion capitals being cities globally and that’s where people go to get the latest fashion, the latest fashion news, meet fashionable people, get influenced, etc. All of that will now be available on Flipkart,” said Rishi Vasudev, head of Flipkart Fashion, in an interview.
“On the experience side, we revamped the whole buying experience and brought in personalization, we brought in tie-ups with lots of films, magazines, etc, so that there is content that customers look up to,” added Vasudev.
The rebranding exercise started in early 2017 when Flipkart launched a project internally that was called Avatar.
As part of its new Fashion Capital initiative, Flipkart is aiming to bolster its roster of big brands, including large international players, while also expanding its reach in smaller towns and cities, where online shopping is steadily gaining momentum.
That strategy of getting bigger, international brands, however, might put Flipkart in competition with Myntra —something that Vasudev conceded.
“Because we are multi-format (retail), are we cannibalizing each other? Yes, there would be some cannibalization, but you’re also ensuring that you’re taking care of different kinds of customers,” he said.