Flipkart has moved a substantial proportion of its manufacturing and sourcing for in-house brands from China and Malaysia to India. This is aimed at helping the company cut costs and reduce prices of private label products sold across 300 categories on its platform.
Flipkart’s private brands contribute about eight per cent to the company’s overall sales. Much of the electronics and consumer durables, textiles, most high-end Android TVs, air conditioners, washing machines and smaller appliances on Flipkart are now being sourced from India. As much as 50 per cent to 60 per cent accessories also get sourced from India. Two years back, almost everything electronic came from China. Today, that number would be less than 50 per cent. When Flipkart launched its furniture brand, the entire range was sourced from Malaysia — now that’s down to less than 50 per cent. Out of 150 factories of Flipkart, about 100 are in India. So details of the split in terms of value of goods manufactured in India versus China and Malaysia are unclear.
Flipkart, the e-commerce giant based out of Bangalore, was founded in 2007. The company initially focused on book sales, before expanding into other product categories such as consumer electronics, fashion, and lifestyle products.