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“When you are out of quality, you are out of business” – reads a applique aloft an accumulation band in the Dixon Technologies branch in Selaqui automated breadth alfresco Dehradun. On a billow abounding day in Delhi, I incidentally booty the abundant bare cruise to Dehradun (hosted by Flipkart). I acquisition myself in a sprawling 230,000-sq ft accomplishment ability to amount out why Flipkart has angry up with one of the arch acquaintance design-focused and solutions aggregation affianced in accomplishment articles in the Indian chump durables, lighting and smartphones space. The partnership, I am told, will accredit Flipkart to accomplish TVs beneath the company’s fifth clandestine characterization brand, MarQ.

Right from ascent apparatus on the PCB (Printed Circuit Board) to testing them, authoritative panels in house, accumulating TV apparatus and testing TV sets for sound, picture, and final quality, which interestingly is done by befitting them switched on for abounding 24 hours at the accomplished volumes in an amid room, I get to see a abounding MarQ TV fabricated from the blemish and arranged off in apparent atramentous colour-printed calendar box boxes. The atramentous boxes are an added business blow to contentment the MarQ customer, as acicular out by Flipkart officials!

And the chump does assume to be interested, if not delighted, as is axiomatic from the aboriginal sales abstracts of MarQ. Adarsh Menon, Vice President & Head-Private Characterization at Flipkart, reveals that aback MarQ’s admission on the Flipkart belvedere aftermost month, the etailer has awash abutting to 5,000 units of the product. And if this is the acknowledgment in three weeks column the launch, Menon is assured that sales in the TV class will added than bifold every year.

So why absolutely is Flipkart cyberbanking on MarQ to advance its clandestine characterization calendar in white appurtenances and does MarQ accept what it takes to contentment the customers?

Over the advance of this visit, this is what I approved to understand.

It was in October this year that Flipkart took the attempt with clandestine characterization in the white appurtenances class with MarQ. Incidentally MarQ is the company’s fifth centralized brand, afterward a ambit of its own labels in appearance and apparatus alien over the accomplished several months. It has been launched with the eyes to make‘Better. Possible Today’.

Under the MarQ label, the ecommerce above aboriginal formed out bake ovens. Televisions followed a anniversary afterwards that and abrasion machines will chase anon in the third anniversary of November.

Adarsh threw added ablaze on the ecommerce major’s plans. He revealed, “Washing machines are aloof bottomward the band in the abutting brace of weeks starting from November 21. We will be rolling out the semi-automatic ones first, priced 15%-20% cheaper than the bazaar price.”

He added appear that the etailer is attractive to get into ACs for the summer too. However, that’s jumping the gun. Because as far as the white appurtenances class for Flipkart is anxious (which comprises TVs, ACs, microwaves, abrasion machines, and chimneys), TV is the better affective item.

While Flipkart has awash abutting to 5,000 units of MarQ TV aural three weeks of its launch, Adarsh is quick to point out that it’s still aboriginal days. While the antecedent advance has appear on the aback of aboriginal adopters who are die adamantine Flipkart loyalists as able-bodied as on the aback of the Diwali season, it will be the advancing months that acknowledge how abundant absorption MarQ is able to accumulate amid the customers.

However, the antecedent numbers acknowledge some cogent trends.

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“So barter in the East beyond all assets tiers accept absolutely bought the TV. About 60% of MarQ TV sets awash were the 32 inch TV (costs $183) while the blow were 24-inch ones (costs $137),” reveals Adarsh.

In the activity are affairs to acquaint three to four added awning sizes such as the 40 inch in the abutting six months, which would afresh be priced 10-15% bottom in allegory to competition.

But why absolutely is Flipkart acceleration bottomward on its clandestine characterization strategy?

It’s absolutely not because of the allowance up front. Adarsh explains, “Going afterwards allowance upfront is not what we do in clandestine labels. Allowance is an aftereffect of several things happening. Aboriginal off, you accept to accept a absolutely abundant affection artefact and the chump has to be blessed with it. Again follows chat of aperture and acceptable reviews, so that sellers who advertise the cast accomplish added money, and that’s how we accomplish added money. So abandoned aback all these things happen, that margins alpha acrimonious up for us.”

So while allowance may be the end bold for Flipkart, for accomplice Dixon it’s article different.

Dixon is the one of the better acquaintance design-focused and solutions aggregation affianced in accomplishment articles in the chump durables, lighting and adaptable buzz markets in India. Started in 1993, Dixon has a absolutely chip end-to-end artefact and band-aid apartment as an aboriginal accessories architect (OEM) alignment from all-around sourcing, manufacturing, affection testing and packaging to logistics. With abysmal artefact ability and an centralized R&D centre at Noida, Dixon produces TVs for above all-around brands like Panasonic, Sanyo, Akai and a host of above Indian brands. In fact, in agreement of acquirement chump revenues, 30% of Dixon’s revenues in FY2016-17 came from TVs, followed by adaptable phones and again lighting.

So what absolutely is Dixon aiming to get out of this affiliation with Flipkart as it chases its eyes to appear as the better complete solutions provider in chump appliances, lighting, home appliances, and adaptable phones?

As Sunil Vachani, Promoter and Chairman, credibility out, it is scale.

Sunil explains, “The amount aesthetics of the aggregation is that aboriginal we charge to actualize calibration and that is benchmarked adjoin not abandoned bounded but all-around companies. We already accept a assembly accommodation of 1.2 Mn TVs and we are ambience up addition ability in Tirupati.”

So while Dixon’s accomplishment assemblage in Noida produces mobiles, in Dehradun it produces lighting, TV, abrasion machines. In the accessible Tirupati plant, all of the company’s accepted articles would be manufactured. The Tirupati ability will booty the absolute TV assembly accommodation to 1.8 Mn units per annum, as per Pankaj Sharma, CEO at Dixon. This year alone, Dixon produced bankrupt to 1.1 Mn TV units FY 17-18.

Given that the absolute TV bazaar in India is about 12 Mn as per Sunil, Dixon’s plan is simple.

“The abstraction is to be the cardinal one or cardinal two in every acreage we are in. That’s why we are aflame to be partnering with Flipkart. Because admitting the huge advance we accept seen, the all-embracing sales of ecommerce as a allotment of absolute retail sales in India, is still actual small.”

So with Flipkart and MarQ, Dixon additionally has a adventitious to acreage some allotment allotment in the growing ecommerce pie. But how absolutely will MarQ, a cast around alien as compared to accustomed players like Panasonic, Samsung, and the others access a allotment of the beginning TV bazaar in India?

For a moment, let’s balloon about Dixon’s appalling accomplishment as a manufacturer, its six advanced accomplishment accessories beyond the country, its centralized testing accessories and console adjustment facilities, the abounding certifications the accomplishment bulb has been accustomed with or the actuality that it is a above OEM and ODM architect for all-around TV brands.

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Let’s try to accept how an ecommerce cast like Flipkart gets into allotment a TV assemblage that can angle its own arena at the amount point it is actuality offered.

The acknowledgment is simple – by acquirements from both its barter and its competitors.

Adarsh explains, “In ecommerce, the acceleration of acknowledgment from barter is burning as compared to an offline channel. Alike afore the accession of a TV or a artefact happens, a chump starts administration feedback. So one affair we focus on is mining that data, creating that articulation of chump and consistently agriculture it aback both internally as able-bodied as to all our partners.”

It is this articulation of barter and the intelligence from brands in the bazaar that Flipkart took to Dixon aback it chose seven TV sets whose best appearance they capital the architect to absorb in MarQ.

Reveals Pankaj, “They brought in seven sets with them to our R&D ability in Noida, anniversary accepting some acceptable feature, based on the acknowledgment accustomed by Flipkart barter on the site. We calm approved to actualize a artefact which was meeting, accessible or at atomic abreast to those specifications. That’s how MarQ was created – it’s not an off the shelf product. The picture, sound, brightness, all has been advised based on the acknowledgment accustomed by Flipkart customers.”

He added reveals that one of Flipkart’s affection guys was sitting on the assembly band aback the assembly commenced and testing those sets!

Because that is what about Flipkart is acceptable at. Adding to this Adarsh appear that Flipkart has congenital a lot of capabilities in sourcing and in quality-QC and QA. There is a aggregation that sits in China and India. “And their job is to body a accumulation of aerial affection sourcing ally aerial affection QC partners. But the aggregation that absolutely does the artefact development is the continued OEM team,” he said.

And appropriately essentially, the R&D and assembly was all in Dixon’s hands.

But accustomed that it was the aboriginal time that Dixon was bearing a artefact for not a accepted cast but rather India’s aboriginal ecommerce behemoth, were there any hurdles in this process?

“The best difficult affair in bringing out MarQ was the time. The time was actual abbreviate to accept what the added articles were and again advance MarQ. We accept a R&D aggregation in Noida and China. So it’s not that it was a actual aerial technology artefact that my aggregation was not able to analyze but time was a constraint. There was lot of burden from Flipkart’s ancillary to accumulate the accepted of the artefact actual high. In fact, we are still aggravating to advance it added by alive on the complete aspect.” Article which is additionally acicular out in the chump reviews on the site.

So while advance will abide a connected action as Flipkart adds added articles to the MarQ range, one affair will abide connected i.e. focus on carrying affection at a amount able price.

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Pankaj adds here, “The bottle acclimated in the TV, which is 65% of the bill of material, is the aforementioned actuality acclimated by top A brands as there are abandoned 7 FABs (semiconductor artifact plant) in the apple who accomplish that glass. So don’t be addled by the low prices of MarQ. Also, the TV console for MarQ is actuality fabricated in-house, which agency that about 70% of the artefact is fabricated in-house. Alike PCBs are fabricated centralized anticipation PCB apparatus are alien by us. In this actual factory, starting appropriate from components, we are accomplishment a abounding TV.”

And appropriately in abounding ways, MarQ is aloof not a aboriginal for Flipkart, but additionally in abounding means a aboriginal of its affectionate for Dixon.

Here Adarsh adds that while MarQ will appear into the bend of Jeeves, a account arrangement set up by Flipkart of about 300 applicant account centres for barter of its absolute clandestine characterization range, the ecommerce above will be relying badly on chump acknowledgment and reviews through this approach as able-bodied as through ratings and reviews on the site.

Given that there is a lot of affiliation accident amid offline and online channels, and Flipkart itself is carefully demography that path, will MarQ booty the omni approach avenue too?

“Not any time soon,” says Adarsh. The acumen actuality that chump durables as a class aback shopped online, is still underpenetrated. And MarQ is aloof one of the brands that will be offered to barter online. So he feels that there will a lot of allowance to abound online abandoned admitting there is no abstinent the actuality that there is a bright use case for offline channels accustomed that white appurtenances are blow and feel products.

Although Adarsh did not acknowledge how abundant of the GMV allotment Flipkart is assured its clandestine labels to accompany in or alike how abounding MarQ units the Dixon branch will aftermath at Dehradun, for now it is agreeable with affairs its clandestine labels online. He did acknowledgment that best clandestine labels are accidental in bifold digits for best categories beyond the platform. Acumen for this, as per Adarsh, is that Flipkart as a belvedere gets 2X the cardinal of hits any offline advertisement so far as announcement is concerned.

But what about Dixon? How abundant does it see Flipkart arena a role in its revenues?

“It’s too aboriginal to say how abundant of Dixon’s revenues will appear from Flipkart. But we see them accepting a cogent allotment with their clandestine brands. With their growth, we will abound as well,” says Sunil.

For the moment, it’s too aboriginal to say whether the MarQ clandestine characterization will be able to accomplish its mark amid the branded TVs and that too with an online attendance alone. But one affair is clear, Flipkart is not afraid abroad from its clandestine labels any time soon. Aloof aftermost week, the ecommerce amateur appear its attack into ablution its own smartphone, Billion Capture , beneath its ‘Made For India’ cast Billion.

Here’s a quick attending at the added clandestine characterization brands launched by Flipkart anytime aback the barrage of its agenda music abundance Flyte in 2012. Aback then, Flipkart has to date launched nine clandestine labels. Not all were a success though.

Talking about Flipkart’s better battling Amazon, the all-around ecommerce behemothic too has broadcast it attack in the clandestine labels in India. Aback in September 2015, Amazon launched its clandestine characterization cast AmazonBasics. Geared appear accretion its chump base, AmazonBasics offers a ambit of high-quality articles for barter to adore at amount pricing. In September 2016, it followed it up with men’s clandestine appearance lab, Symbol. Myx, an centralized clandestine characterization for women’s indigenous wear. Besides these, it has Solimo for home and kitchen and afresh launched its abundant accessible smart, wireless Echo speakers in India.

It’s bright that both the rivals will be cyberbanking added and added on clandestine labels in times to come.

Besides abrasion machines and ACs, MarQ ability additionally cycle out articles like complete confined and exceptional speakers. The eyes of the cast is to accomplish accomplished affection articles affordable to amount chump segments, which is over 70% of ample apparatus buyers on Flipkart. While appraisement may be a cull agency here, the catechism still remains, will the Indian consumers be accommodating to buy a white acceptable cast developed by an ecommerce amateur as compared to acclaimed all-around brands? A attending at aboriginal MarQ reviews on the armpit is a bag of alloyed opinions. And that’s area lies MarQ’s ultimate analysis – affective from aloof addition appropriate buy to acceptable a appalling cast in Flipkart’s clandestine cast portfolio.

[The biographer was in Dehradun on a sponsored cruise by Flipkart]

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