Flipkart, which operates across distinguish categories like books, electronics and jewellery, has launched private labels in fashion category.
Justifying the move, Ashish Jhalani, Founder of eTailing India, said, "Fashion provides better margins and is a better hook than electronics to attract customers. While electronics provides less than 10 percent margins for ecommerce firms, branded apparel gets them up to 45 percent.”
He also informed that private labels bring in even higher margins of about 60 percent and for other leading online player, this section contributes about a fifth of total revenue. When contacted, the Flipkart officials remained silent on this.