Flipkart launches its first fashion private label Divastri

As it looks to maintain a lead over global rival Amazon in the online fashion space, Flipkart on Monday launched its first private label fashion brand Divastri. 

Divastri will offer a range of Bollywood- and celebrity-inspired ethnic wear. Flipkart's subsidiaries Myntra and Jabong have a number of successful private labels such as Roadster and HRX. However, these labels largely cater to the western wear segment. 

Flipkart claims it controls 70 per cent of the country's online fashion market along with subsidiaries Myntra and Jabong. To increase its market share in the fashion space, Amazon has launched two of its own private fashion labels Symbol and Myx, apart from signing exclusive partnerships with global brands.

"Over the years, Flipkart Fashion has witnessed tremendous growth both in terms of sales and meeting customer needs. Keeping the momentum going, with our first private label launch Divastri, we aim to meet the rising demand for celebrity and Bollywood inspired looks," said Rishi Vasudev, Head of Flipkart Fashion, in a statement.

The company says it has looked at shopping trends over the past few months to create and design the label and has partnered with global quality testing agencies to ensure it ships high-quality products. The online brands are turning to private labels to boost margins and also fill gaps in their offering to customers.

Experts say private labels will increasingly make up a larger portion of online sales as they yield higher margins to marketplaces who are looking at boosting earnings. While brands such as Myntra first dabbled with the idea of private labels, electronics, furnishings, appliances and even home and office wares are few categories where the trend is kicking off.

In December, Flipkart launched SmartBuy, a private label for electronic accessories, kitchenware, appliances, furniture, and furnishings among other things.