Indian shoppers can look forward to an extra bonanza from Flipkart this festive season as the country’s largest e-tailer prepares to launch a range of water purifiers, refrigerators and large screen smart TVs under its in-house brand MarQ by Flipkart, ahead of its biggest annual sale – Big Billion Days scheduled from October 10-14.

Starting with the launch of four models of water purifiers next week, the e-tailer will also launch a 3 Star refrigerator and a full range of large screen Smart TVs upwards of 40 inches in end September/early October.

MarQ by Flipkart comes with the promise of high quality products at affordable prices, that cost 15-30 per cent less than comparable products from established brands.

Last week, Flipkart launched a range of washing machines under the MarQ brand to address key customer need gaps such as top-of-the-line quality with superior tech-specifications at affordable pricing along with energy efficiency at prices starting at Rs 6,999.

“Every Indian household aspires to upgrade to a higher standard of living. Appliances play a significant role in that aspiration. MarQ is targeted at anyone who wants to upgrade their lifestyle with technology backed products manufactured by globally renowned Tier- I factories like Hisense, Skyworth, Midea and Dixon. All MarQ products undergo three months of rigorous consumer testing and are backed by 1-5 year warranty along with installation and after sales service” Adarsh K. Menon, Vice President & Head of Private Labels & Electronics at Flipkart told BusinessLine.

Pointing out that a majority of Indians drink boiled water, Menon said “MarQ water purifiers are targeted at these people and addresses two major issues they had with buying water purifiers – how will it be installed and how will the water keep purifying through the entire life cycle.” Similarly, the refrigerator and large screen smart TVs have also been designed and manufactured to fulfil customer need gaps as identified by Flipkart.

MarQ by Flipkart made its debut last October with a range of microwave ovens and currently offers TVs, air-conditioners, washing machines, sound bars and premium headphones.

Leading e-tailers like Flipkart and Amazon are pushing private labels to acquire low to mid income group customers from smaller cities who can’t afford big brands. Products bought on Flipkart and Amazon are backed by warranty, installation and after sales services, making it very attractive for customers. They also have the distribution muscle to reach customers in every nook and corner of the country, unlike offline retailers, observed Anil Kumar, CEO of RedSeer Consulting.

Flipkart’s private labels including MarQ, SmartBuy (mobile & IT accessories, home products, healthcare devices), Perfect Homes (furniture), Billion (products made in India for Indians), Supermart (grocery staples) and its fashion brands Metronaut, Divastri, Anmi, Miss & Chief and Cara Mia contribute to a little under 10 per cent of its overall sales at present. Margins on private labels are also much higher and are already contributing 10 per cent more margin for Flipkart.

While Menon’s target of 15 per cent contribution from private labels by this year end will not be achieved, he said, “We will be happy if it contributes to 15 per cent of sales by 2020. Perfect Homes our private label furniture brand is already close to 40 per cent of all the furniture sold on Flipkart.”

Overall, the e-tailer is looking to garner 20-22 per cent contribution from its private label brands in the next five years, emulating what successful retailers around the world are already achieving.

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