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Amazon to mint fat profits, hit rivals on the back of pvt labels

Chillicious Bureau

In a tussle to establish dominance in the Indian market, e-commerce majors have tried and tested many lucrative ways — ranging from giving fat discounts, free merchandises and hefty cashbacks. Recently, they have added private labels in their arsenal kit to lure the domestic consumer.

On the back of this, e-tailers aim to reduce third-party sellers while adding more to their net-profit by selling high-margin private label products.

To take on its domestic rival Flipkart, foreign player Amazon has racked up its products portfolio with private label brands, ranging across categories like electronic accessories, fashion, cookware etc reports an Economic Times article.

In the upcoming online sale parade in October, e-commerce majors will go head-to-head to attract more customers and grab more market share in the Indian online retail space.

Flipkart forayed into the private label segment by acquiring Myntra and Jabong early on, which has given it a string foothold in the fashion, specifically in clothing. On top of this, it plans to launch its own in-house brand in jewellery, fashion accessories and more.

Earlier this month Amazon launched its exclusive men’s clothing brand called Symbol, it already has AmazonBasics, which caters to affordable and sturdy consumer electronics and technology products.