India’s Flipkart to enter food retailing, launch private label
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Walmart-owned Indian e-commerce platform Flipkart is launching a food retail business.
The new initiative will see the firm release its own private label, Flipkart Farmermart, as well as a grocery supply chain and potentially physical stores.
A spokesman for the firm told news outlet Moneycontrol that Flipkart plans to “deepen its penetration in the food retail space, take on Amazon, and run a farm-to-fork operation,” with the board consenting to invest ₹2,500 crore (US$350,000) to expand its operations in the grocery business.
The firm plans to leverage parent company Walmart’s experience in the cash-and-carry sector in the territory, which has helped build connections in the farming industry for grocery and food produce.
Research shows that just 0.15 percent of Indian nationals buy online, although this figure is expected to increase exponentially over the next few years.
Questions & Answers
Q.What is the name of Flipkart's new private label for food retailing?
What is the name of Flipkart's new private label for food retailing?
Flipkart's new private label will be called Flipkart Farmermart. This is part of their broader strategy to deepen their involvement in the food retail sector and develop a farm-to-fork operation.
Q.How much capital is Flipkart planning to invest in its grocery business expansion?
How much capital is Flipkart planning to invest in its grocery business expansion?
The board has agreed to invest ₹2,500 crore, which is equivalent to US$350,000, to expand its operations within the grocery business. This significant investment highlights their commitment to the sector.
Q.How will Flipkart benefit from its parent company Walmart in this new venture?
How will Flipkart benefit from its parent company Walmart in this new venture?
Flipkart intends to utilise Walmart’s extensive experience in the cash-and-carry sector within India. This experience has helped Walmart establish valuable connections within the farming industry for food produce.