Flipkart wholesale launches its operation in 3 cities
In the month of July, the Flipkart Wholesale acquired Walmart, India’s loss-ridden cash-and-carry business that owns the best price brand by combining Walmart’s entire retail portfolio under the Flipkart Group. In its fashion business, the company aims to onboard 50 brands and over 250 local manufacturers in the first phase, across Gurugram, Delhi, and Bengaluru.
Flipkart wholesale will compete with some other deep-pocketed players such as JioMart, Udaan, Metro Cash & Carry, and amazon’s B2B division. Differentiating Flipkart from its wider competitors, the online retailer’s wholesale unit plans to use insights from its parent’s business-to-consumer segment.
Adarsh Menon, Senior Vice-President and Head of Flipkart Wholesale said that “Because of all the data that we have of customers on Flipkart and Myntra, we understand what customers are buying specific to the catchment in which the Kirana (corner store) is located. So, if you are a Kirana in Koramangala in Bengaluru or in Patel Nagar in Delhi, Flipkart Wholesale will serve you a curated assortment based on what customers in the same catchment are shopping and browsing for”.
Menon added that historically the manufacturers and distributors used to push the assortment that these shops were offended, along with that it is not based on data-led insights, the smart selection is a very big proposition from our end.
Flipkart is the dominant player in the online fashion retail segment. By the end of the year, Flipkart wholesale also plans to expand itself into 20 more cities that include Mumbai and across categories such as home and kitchen as well as groceries.
It is said to be that the move will allow the company to compete more aggressively against rivals like Udaan and Amazon, which would operate a wholesale business in the country.
The Covid-19 pandemic has accelerated the willingness of small businesses to use technology that would scale up operations, opening up a market that had in the past viewed technology companies as competitors. In accordance with a report by Redseer Consulting, three out of four of India’s mom-and-pop stores have no exposure to the technology platforms for any services that include payments or procurement.
