Flipkart, the largest e-commerce firm in India, is expected to step into offline business soon. Since long, the company has been mulling over setting up brick-and-mortar stores across the country. The basic idea behind opening physical stores is to start a master franchisee for international brands in the Indian market. Flipkart will sell international brands through its stores and sublicense the offline business. Various sources report that the e-commerce giant is trying to strike a licensing deal with Giordano for selling products online and offline in India.
Until the last year, Flipkart’s idea of starting physical stores was to target the remote areas in the country where there is a lack of internet infrastructure and e-commerce is yet to be established as a regular trend.
Flipkart Will Not be First to Start Offline Stores
Flipkart will, certainly, not be the trendsetter in India in terms of opening offline stores. Pepperfry, Faballey, Lenskart, Nykaa, and Urban Ladder have already started brick-and-mortar stores. Flipkart’s arch rival, Amazon India, has also accelerated its offline business by entering into a partnership with LocalCube Commerce Pvt. Ltd, which runs an assisted e-commerce marketplace for rural customers under the brand of StoreKing.
Another reason behind this step could be the slowdown in business as discounts are declining and customers are wary of buying products before touching them. Reportedly, Myntra is appointing two sub-franchisees for Mango that includes New Delhi-based G&B, which operates 25 outlets of Benetton in NCR and Jaipur-based Samarth, which runs over 100 stores of various brands, including Tommy Hilfiger, Calvin Klein, and US Polo.