In July Flipkart announced that they would be launching Flipkart wholesale, a new B2B marketplace that would help transform the Kirana retail ecosystem in India. This was paired with their acquisition of Walmart India to enable leverage of the strong wholesale capabilities of the company and enable growth and prosperity for kiranas and MSMEs. On September 2, Flipkart Wholesale launched operations in three cities — Delhi, Gurugram and Bengaluru.
According to Adarsh Menon, Senior Vice President and Head of Flipkart Wholesale retail in India is growing but the Indian B2B market, despite being large, has an antiquated distribution model. Today, 90% of commerce in India flows inefficiently through kiranas. It seems SMBs are being hit the hardest by this due to limited access to credit, inadequate product selection, and they withstand high leakages in margins. Flipkart Wholesale boasts strong enough capabilities to meet the needs of kiranas and MSMEs by providing these small businesses a wide selection at significant value, powered by technology to make their lives easier.
Flipkart Wholesale will combine the strong merchandising experience of the Best Price team, its strong relationships with brands, deep DNA of servicing kiranas and 12+ years of experience in operating Best Price stores to provide a strong digital marketplace to the current retail scenario in India. Flipkart Wholesale will be beginning its operations with the Fashion category where 95% of products will be sourced locally from fashion retailers in Gurugram, Delhi and Bengaluru. By the end of 2020, Flipkart Wholesale will have three categories — fashion (apparel, footwear and accessories), home furnishing, and grocery — and will expand to another 20 cities.
“For kiranas and MSMEs, the onboarding process is quite easy and hassle-free. Business-owners can register through our website and download the Android app from Google PlayStore to follow a simple process to be onboarded where they will need to submit a few details and a proof of business — GSTIN, trade licence, shop and establishment licence, FSSAI registration, drug licence, Udhyog Aadhaar, etc.”