Betting big on licensing, eCommerce giant Flipkart has came out with brand licensing initiative. Aimed at easing the process of licensing for international brands and offering more authentic and branded merchandise to consumers, this is ‘a first of its kind initiative’ in the industry, under which eCommerce major has inked pact with Viacom18 for licensing of three brands - Teenage Mutant Ninja Turtles(TNMT), Spongebob Squarepants and Peanuts.
While its sister-concern Myntra is already making it big in licensing, Flipkart aims to undergo the process and alter the licensing operations of foreign brands by offering a superior analytics system and tight control to kick-start their operations in India.
Facilitate licensing of international brands: Global brands are constantly looking to partner with the most competent manufacturers across categories. Reckoning upon its expertise across more than 70 product verticals, Flipkart aims to become the licensing platform to connect these brands to the most deserving sellers in India in more innovative approach towards brand merchandising.
Flipkart vice president and head – seller ecosystem Manish Maheshwari said, “Through this online licensing concept, we want to simplify this process by connecting brands with the top performing sellers on our platform, giving the brands the power to keep a track on the product sales as well as the quality.”
The promise of quality: Flipkart is also looking to expand and extend its existing ecosystem by adding licensors on one side and high-quality sellers that are eligible to be licensees on the other side.
Maheshwari further added that international brands that issue licenses through the offline model face several challenges when it comes to sales reporting and product quality control, which in turn impacts their royalty.
Such an initiative will create an opportunity for sellers to weave a better consumer experience by assuring them quality of authentic products.
Addressing the pain points: The biggest threat or the ‘core pain points’ for brands is counterfeit, parallel markets and lack of transparency on retail sales that Flipkart aims to address through its ‘superior analytics system and the tight control" it keeps on product quality.
While this arrangement serves as an excellent opportunity for international brands to increase the number of brand touch points through venturing into new verticals where the merchandise was previously not present; this may end up forming clusters of sellers exclusive to Flipkart only.