Flipkart which is the largest e-commerce company in India has been undertaking partnerships with many big brands and recently the American multinational retail corporation, Walmart invested in the company. While the company was in news for the largest investment, there was also news that was making rounds in the market that Flipkart is building a team in Malaysia.
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As per reports, Flipkart is building this team for its furniture brand, Perfect Homes and as the top quality furniture in the world is made in Malaysia, the company is finding partners there. Within no time, the company will have its own team in Malaysia to handle first mile logistics and quality control. As per the reports, Flipkart’s Malaysia partners will create engineered wood furniture, while China-based manufacturers will make upholstery, metal and glass products. The company already has in place partners for solid wood furniture in India, primarily in Rajasthan. This step by the company can be seen as its strategy to become the biggest furniture brand in India.
From the very beginning, Flipkart has been paying full attention to each and every product and it’s considering a single product at a time. Now, it is the time for furniture brands. Before this, Flipkart has paid full attention to the Smartphones market and now it has become the largest platform for smartphones due to its exclusive partnerships. The company had GMV of $1 billion in FY2014, and it grew to around $4 billion in a year. This rise in sales was due to the exclusive smartphone partnerships like with Motorola.
At present, smartphones is the single biggest contributor to GMV for Flipkart, and large appliances the second largest. Furniture as a category is similar to large appliances hence, the next target of the company is the Furniture brand. Adarsh Menon, Head of Private Labels at Flipkart, said that “We spoke to a lot of customers and the first insight we got was that there is no furniture brand (in the country). They wanted a brand as they see reassurance in that. We found that the top attributes customers want in a brand are affordability, durability, super reliable after-sales, and range.” So looking at the reviews by the customers, the company started its plan for the furniture category. Flipkart already had a template ready with its Smart Buy brand, which covers a range of products from bedsheets to small appliances, and it used the same for Perfect Homes.
What Services is Flipkart planning to offer?
The company has also started a quality certification, FurniSure, for furniture brands. Apart from certification, the company is also working on offering a better experience to customers by focusing on after-sales. It is trying to improve the installation services for the furniture. The company is also planning to offer more services like to help with shifting furniture when a customer shifts home, and even cleaning services for furniture.
Why is this brand important?
Perfect Homes, as a brand is important because “Perfect Homes” products are about 30 percent cheaper than similar products offered by other brands, claims Adarsh, Head of Private Labels at Flipkart.
The brand was first launched in September last year and the customers have shown great interest in it from the very beginning, however, the Flipkart team in Malaysia and further partnerships can take the brand to another level.