‘Billion’ is the budget brand; Flipkart’s Sachin Bansal is building
How precisely human brains have evolved within such low span, is the universal curiosity. Especially when it comes to strategizing things that are mandatory to save your assets and make it a turning point for the business.
Executive Chairman and Co-founder, Flipkart, Sachin Bansal has been trying out a plan basically to keep its user connected to Flipkart. It seems that Bansal is more influenced by the word ‘Billion’. The Co-founder is developing budget brand named as ‘Billion’ across various categories, for example, accessories, electronics, and appliances to draw new shoppers on Flipkart. The e-commerce giant has already started implementing its ‘Billion’ plan. It has launched products such as backpacks, mixers, and many others under the ‘Billion’ brand.
The project is important for the co-founder, Sachin after the incident where he was asked to give up the CEO position to Binny Bansal —Flipkart’s co-founder in 2016. It was an unfortunate year where company witnessed a huge loss in a battle with rival Amazon India. But further, Binny was swapped by the new face, Kalyan Krishnamurthy—a delegate of Tiger Global Management, which is Flipkart’s largest investor.
The prediction made by the e-commerce players about the expenditure power of the Indians seems to be overestimated. In addition, the value of India’s $14–15 Billion online retail market hardly augmented in the previous year. The e-commerce companies are striving hard to fetch new users over the last 18 months.
Bansal’s efforts to build ‘Billion’ brand can be considered as an additional bet of Flipkart. But thinking from the Bansal’s perspective, it is a crucial project for him as it is his first big step after losing the position as a CEO.
‘Billion’ project will also play a crucial role in boosting the sales of the products that fall under the category of private label that gives high margin returns to online retailers compared to those sold by third-party vendors and brand owners.
Flipkart received a fresh funding of $1.4 in April with which, the company has to spend wisely to reduce loss and make a lucrative business out of it.