Will Flipkart’s gamble with new private label fashion succeed?

Flipkart is betting big on fashion with the launch of its private label ‘Divastri’ that includes 1,500 styles focused exclusively on women’s ethnic wear.

If electronics is the king of GMV, fashion is the king of margins in online commerce. Indian online market for fashion is estimated to be worth $12-14 billion by 2020 from the current $4 billion, according to a study by Boston Consulting Group (BCG) and Facebook.

Home-grown e-commerce unicorn Flipkart, aware of this estimate, has, in the past three years, focussed on this category to ensure that it remains the market leader. In 2014, it acquired Myntra, and in 2016, Jabong. The alliance now claims to have 70 percent of market share in online fashion, with Flipkart alone claiming to have 35 percent.