Flipkart, which is owned by Walmart, launched 'Flipkart Boost' on Tuesday, a new programme aimed at supporting digital-first consumer brands in expanding their business. Flipkart Boost will provide end-to-end support to rising 'Made in India' companies through a service fee model, as per a release. This would include planning, advertising, cataloguing, logistics, quality control, and mentoring.
The Flipkart Boost programme will shortlist brands based on a set of predetermined objective criteria, such as growth potential, sustainable revenue run rate, quality focus, commitment to building a long-lasting brand, solid product mix, and customer orientation, as per the company."Based on certain criteria, brands can apply directly on the Flipkart seller platform, of which 100 brands will be chosen for the programme this year,"
it stated."Brands can apply directly on the Flipkart seller platform based on specified criteria, and 100 brands will be picked for the programme this year," it stated.A network of venture capital funds and active investors in the D2C space, including A91 Partners, DSG Consumer Partners, Fireside Ventures, Matrix Partners India, Sequoia Capital India, and Stellaris Venture Partners, will consider the selected brands for funding.
Selected brands will be able to tap into Flipkart's knowledge across functions, expand digital awareness, and enter various geographies with the right solutions to strengthen their presence and have a measurable impact on customers, according to the company.The Flipkart Boost programme will provide these brands with growth prospects by providing information into their performance and customer traction, according to the company.
Flipkart stated the programme was tested earlier this year with a number of companies (including Delight Foods and Pilgrim, a beauty products company), and that these brands spanned a wide range of areas, including food and beverage, baby care, lifestyle, beauty, and home renovation."As India's homegrown e-commerce marketplace, our primary goal is to expand our offerings in line with evolving customer preferences; while ensuring empowerment of Indian MSMEs (Micro, Small & Medium Enterprises) and partnering in the 'Make in India' mission," said Ravi Iyer, Flipkart Senior Vice President and Head (Corporate Development).
"The onset of the pandemic and the resulting rise of direct-to-consumer brands have boosted the MSME sector in India. The growing popularity of digital-first brands driven by a focus on specific customer needs demonstrates immense market potential, " he also said.The aim of the Flipkart Boost Program is to help these developing customer-focused businesses grow and thrive by providing them with relevant mentoring, including access to a network of investors, market intelligence, scalability programmes, and marketing engagements,
He said.As per a report by Avendus Capital, India's D2C (direct to customer) sector is worth USD 44.6 billion at the end of FY 2021 and is predicted to reach USD 100 billion by 2025.Over 800 D2C brands have used digital to grow their presence and cater to changing customer preferences in the last 18 months. The pandemic has increased the uptake of D2C brands, with demand increasing by nearly 88 percent in 2019.
Source: Business Today
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