India’s largest e-commerce brand Flipkart is in talks to collaborate with Sansui, Nokia, and Motorola, to manufacture Smart TVs. This will expand Flipkart’s MarQ brand of electronics and home appliances. Talks are going on with Motorola and Nokia to start their own range of smart TVs. The move is aimed to compete Amazon which has its own private company called amazon basics. According to a report in Business Standard, the e-commerce company is now in talks with three companies since the last six to eight months.
While Amazon runs a private brand ‘Amazon Basics’ of electronic products to Indian consumers, Flipkart has TVs, washing machines and audio accessories in its MarQ brand. In its collaboration with Sansui, Flipkart will launch smaller home appliances such as juicers, grinder and other kitchen appliances. The work is looked after by the company’s MarQ private label team, headed by Adarsh Menon who also heads the electronics and furniture category for Flipkart. The company is setting its manufacturing capacity – a network of contract manufacturers introduced for in-house brands MarQ and SmartBuy – to major brands to co-develop stock keeping units (SKUs) in a special partnership where Flipkart will build, stock, sell and service the new items. With the firm threat of competition coming from Reliance Industries in e-commerce, Flipkart is exploring all platforms to expand its footprint in the country. Neither Flipkart or Motorola nor Flipkart commented on this report. Flipkart will produce and market the product’s end to end and pay a part per item on actual sales. The final product prices, as well as product specifications, will be decided by the two companies based on the sales promised by Flipkart.
With the recent launch of Flipkart Supermart in Mumbai, Flipkart entered its fifth market in the grocery space. It recently announced a data centre in Telangana to service the ‘next 500 Mn’ digital consumers in India. The company is also exploring a hybrid online-offline model with a goal to sell smartphones through 15K convenience stores, beauty salons, bakeries, and pharmacies. Flipkart wants these brands to create exclusive models for the e-com site, which may manufacture through third parties and market some SKUs. Flipkart is looking for higher margins from product sales under these new partnerships – something that is the aim for private labels itself.