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Flipkart launches private label fashion brand Divastri to combat rival Amazon

Flipkart launches a private label brand Divastri to combat rival Amazon

To combat its rival Amazon, Flipkart has intensified its marketing strategy and has now launched its own private fashion label called Divastri, which aims to tap into the demand for women’s ethnic wear.

Amazon had launched its own private brand Symbol in September last year.

Through Divastri, the company is targeting unstitched garments category. So far, the category has been mostly served by long tail merchants in a bid to control quality and pricing in the segment.

Only last week, Flipkart announced that its 'Fashion Sale' event witnessed a 2x sale jump in the first three days of the total nine day sale event.

Rishi Vasudev, vice president of fashion (retail), Flipkart, said: "We have some basic line of private label but Divastri will be our first brand in the fashion space. We have selected over 20 sellers, some of whom double up as manufacturers to licence the brand and sell on the Flipkart fashion marketplace. We have started with a selection of 1,500 and will soon ramp it up to 2,500."

Vasudev further said that Flipkart will be introducing new labels in the coming months as part of the fashion vertical. The current line will meet quality standards with a uniform design story for its offerings.

Flipkart says that fashion accounts for more than 60% of all units sold on the platform. Among the 60%, nearly half the units sold are in the ethnic wear and Indian contemporary wear category.

While this is the first private label brand for Flipkart, Myntra — the fully-owned subsidiary of Flipkart - already has fourteen private label brands, including Roadster, All About You, Mast & Harbour, and Moda Rapido among others.

It recently acquired HRX by Hrithik Roshan, which is already a ₹120 crore brand. Myntra expects to close FY2017 with 21% of its revenues from its private label brands.