Sep 23, 2016

Flipkart enters into exclusive licensing deals with major fashion brands

Written by Avantgarde
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The e-commerce giant Flipkart is all set to enter into exclusive licensing agreements with brands like Provogue, Swiss Military, Carlton London and Chemistry, among others. This move is inspired by the success of Flipkart-acquired-Myntra which already deals in exclusive licensed merchandise of brands like HRX, Harley Davidson, Marie Claire etc. 

The main aim behind this move is to gain a greater control on the product range and pricing of these brands and also to ease the process of licensing for international brands entering India thereby offering consumers more authentic and branded merchandise.

Flipkart, which also recently acquired Jabong, for $70 million, thereby marking its clear dominance in the online fashion market plans to manufacture some of the products for these brands which will be available only on its platform.

‘Flipkart-Assured’, a newly launched programme by the e-tailer, guarantees an overall better consumer experience and quality and these partnerships will help foster this promise.

Flipkart has also sealed exclusive brand tie-ups with Peter England for PE shoes and Flying Machine and outsources the manufacturing of these products to different partners. In a similar arrangement, Flipkart has partnered with Viacom 18 for the licensing of three of its brands – Spongebob Squarepants, Teenage Mutant Ninja Turtles and Peanuts.

Fashion currently registers about $1.5 billion in GMV (Gross Merchandise Value) for Flipkart and they aim to cross the $5-billion mark by the end of this year.

With this approach not only will Flipkart be able to control product quality and reduce lack of transparency of retail sales but it will also allow sellers to create better opportunities for buyers by differentiating themselves and guaranteeing authentic quality products. Furthermore, it will also provide an opportunity for international brands to increase consumer touch-points by expanding into new verticals. Through this online licensing concept, Flipkart will be able to simplify the licensing process for international brands by connecting them with top-performing sellers thereby allowing brand to keep track of product sales and quality.

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