Amazon India eyes private label

Amazon India is planning to expand its private label fashion offer to gain a bigger foothold in the growing eCommerce sector.

Deal Street Asia reports that the US-based company sees private label fashion and electronics lines will help give the brand additional pulling power with Indian consumers in a crowded, but booming online retail market.

“Launching private labels is tricky as India bans foreign direct investment (FDI) in online retail, but allows 100 per cent FDI in the marketplace model, under which sites such as Amazon and Flipkart are supposed to simply connect third-party sellers with customers,” Deal Street Asia noted in a report online.

Private label products may also be added to its grocery offer, which it markets through the Amazon Now app.

Amazon recently hired former Myntra chief creative officer Gautam Kotamraju to lead its push into private brands in fashion. Kotamraju, who has worked 18 years in the fashion business, helped create Myntra’s large private brands business, which generated more than 20 per cent of Myntra’s gross sales within two years of its launch.

Amazon hasn’t decided on a timeline for the launch of its proposed private brands in fashion, the report said, quoting sources familiar with the matter.

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