Flipkart’s Wholesale Unit May Go Live Next Quarter
Who would not love the convenience of choosing from thousands of products? The product as per your choice, color, requirement, and budget. Not only that, you won’t even have to go out! Just a click of a button and get the product delivered at your doorstep.
That’s how the digital world has spread its arms wide open. Walmart owned Flipkart which is one of the pioneers in the e-commerce industry since its very inception has anything and everything to offer, from household items to high tech gadgets or from clothes to accessories everything is available under one roof.
According to a recent news update, the e-commerce giant i.e. Flipkart is all set to launch its wholesale business in the upcoming quarter. With the news confirmed by two sources who are directly aware of the development said, Flipkart is all geared up to take on Amazon’s B2B division, Reliance’s markets, Tencent-backed Udaan apart from several other vertical E-Commerce startup companies.
Over the last few months, Flipkart has rapidly worked on and ramped up its supply chain capabilities and engagements with all the manufacturers to strengthen its run-up for the huge launch.
As per one of the sources, Flipkart has already started a pilot FMCG project of supplying the grocery/kirana stores located in the region of Delhi and NCR. Along with that, Flipkart has been in touch with an FMCG supply chain startup named Jumbotail in regards to potential investment to strengthen its Grocery/Kirana store procurement experience.
In order to get a jump start, Flipkart will lay a major focus on FMCG and Fresh food categories. And along with time and a planned strategy, will get into the segment of Electronics and fashion as well. “The idea is to look at the B2B space with the same technology-first approach as B2C,”
The initiative will be headed under the supervision of Adarsh Menon, Senior Vice President at Flipkart. Not only that, a lot of consumer marketplace executives have already been transferred to this division in order to carry early pilots and build out the categories.
No direct comment was released regarding the launch of Flipkart’s wholesale business by its spoke persons. Rather they gave a comment that “We view the B2B segment as an opportunity to support and grow kiranas and SMEs in the country,” the spokesperson said. “Technology can play a critical role in making the kirana ecosystem very robust and efficient.”
This move comes in to picture when Flipkart’s parent company Walmart has already let go of a lot of employees across sourcing, agribusiness and fast-moving consumer goods B2B divisions. There have been speculations about the merger of Flipkart with Walmart’s wholesale cash to carry business in India, which is incurring heavy losses.
In December 2019, Flipkart has already made a huge investment in fruits and vegetables supplier Ninjacart to boost its sourcing from the farmers.
In October 2019, Flipkart has also registered an entity under the name of Flipkart FarmerMart, marking its entry into the food retail category. In addition to the above, Flipkart has also invested in a B2B last-mile delivery platform named Shadowfax.
With this news spreading like fire, we can assume a huge transformation in the whole business as two giants i.e. Amazon and Flipkart will be ready to face each other and in one way or the other, it will certainly benefit the consumers and also the wholesale market will witness a new change.