Flipkart Wholesale, a powerhouse in India's B2B sector, has its roots in Walmart India. When FDI regulations allowed multi-brand B2B cash-and-carry businesses, Walmart entered the Indian market, setting up various stores to cater to business consumers. This endeavor, as old as Flipkart itself, was consolidated into the broader Flipkart group about three years ago. Today, Flipkart Wholesale stands as a testament to the successful integration of Walmart's B2B model with Flipkart's innovative retail strategies.

The company operates on a unique B2B format, serving a diverse range of business consumers. Its primary customers are grocers, including Kirana stores of various sizes and forms. Additionally, the company caters to the HoReCa segment (hotels, restaurants, cafes) and institutional buyers, such as large offices needing pantry supplies. Chemists also rely on Flipkart Wholesale for FMCG products, excluding pharmaceuticals.

"We have a truly omnichannel approach, with 26 stores across the country, a robust out-store business, and an ever-growing online presence," says Dinkar Ayilavarapu, Head of Flipkart Wholesale. "About 20 percent of our customers place orders online every month, showcasing our unique position in the Indian market."

The Omnichannel Advantage

Flipkart Wholesale's omnichannel model is its defining strength. The company seamlessly integrates three channels—physical stores, a field force, and online platforms—into a single inventory system. This ensures a wide range of products are consistently available across all channels, addressing the needs of customers who prefer different shopping methods.

"Our omnichannel strategy allows us to serve the full breadth of our customers' requirements, whether they visit our stores, receive doorstep service, or order online, they benefit from our extensive inventory and efficient distribution," Ayilavarapu explains.

This model also solves a critical problem for supermarkets and Kirana stores in India, which often struggle to stock the 2,000 items they need to compete with organized retail chains. Flipkart Wholesale offers an unmatched variety, enabling these small businesses to thrive.

Bridging the Knowledge Gap

Educating small retailers is no easy feat. When asked about the strategies Flipkart Wholesale employs to educate and support kirana owners, the response sheds light on a multifaceted approach.

“One of our brands had conducted some research, which revealed something quite interesting about the life of a kirana store owner,” Ayilavarapu explained. “The store is a place where the owner is constantly hassled – by customers wanting the best deals and by salespeople pushing products. However, the only time they are treated like a customer, with no hassle, is when they are in our stores. We provide an environment where they can browse, learn, and shop in peace. Our stores are large, air-conditioned spaces where they can spend 45-50 minutes, assisted by our staff, without any pressure.”

Flipkart Wholesale leverages this environment to educate store owners. “Getting them to visit the store is not easy, as they rarely leave their shops. But those who do visit once a month find it valuable. It’s our best opportunity to update them on what’s new,” he added.

Beyond the in-store experience, Flipkart Wholesale’s sales staff visit kiranas weekly, providing updates and education. “We are also big on digital advertising, targeting our members with information about new products and promotions. Our app serves as another educational tool, mainly focused on transactional information about deals and new arrivals.”

Meeting Diverse Customer Needs

Flipkart Wholesale's customer base includes 1.2 million active members, with a registered base nearing 2 million. The company leverages this vast membership to offer insights and support, helping small businesses optimize their product mix and stock levels. This data-driven approach empowers Kirana stores to compete effectively against larger retail chains.

Ayilavarapu notes, "We provide our members with insights based on their purchasing patterns and trends observed in similar stores in their area, this helps them make informed decisions and stay competitive."

A significant challenge for small retailers in India is accessing formal credit. Flipkart Wholesale partners with banks to offer co-branded credit cards, helping its customers improve their credit ratings and gain better access to financial products, this initiative not only boosts their purchasing power but also integrates them into the formal economy.

Geographical Reach and Expansion

With 26 stores strategically located across India, Flipkart Wholesale covers approximately 3,000 pin codes, reaching about 15 percent of the country. Each store serves a 150-kilometer radius, ensuring extensive coverage and frequent service. The company's strongest presence is in Andhra Pradesh, Telangana, Punjab, Madhya Pradesh, Uttar Pradesh, and Maharashtra.

"Our footprint in underserved markets is particularly strong," Ayilavarapu highlights. "In smaller towns, where traditional distribution networks are weak, our business metrics and customer satisfaction levels are exceptionally high."

Plans are underway to launch a recommendation product, providing Kirana stores with personalized advice on stocking and business strategies based on comprehensive data analysis. This initiative aims to further enhance the competitiveness and profitability of small retailers.

A Transparent Business Model

The business model Flipkart Wholesale employs is straightforward yet effective. “We don’t charge a subscription fee. Our revenue comes from the margin on products we buy from brands and sell to our customers,” the Ayilavarapu detailed. “By buying at scale, we can offer competitive prices. Our highest price is typically what a brand’s distributor would charge a retailer, often even lower, providing our customers with better margins.”

Despite the complexities of the FMCG sector, Flipkart Wholesale has been growing at a robust rate, currently in the mid-teens. This growth is driven by a combination of strategic planning, market understanding, and strong relationships with brands. Their forecasting methods, grounded in years of data and experience, allow them to predict market needs accurately and respond effectively.

Flipkart Wholesale’s growth has been impressive, with a mid-teens percentage increase year-over-year. “May saw a double-digit growth over last year, faster than most FMCG companies. We expect to maintain this mid to late-teen growth rate through the year,” he said, attributing this success to strong support from brands and customers.

Technology is a cornerstone of Flipkart Wholesale's operations. From basic inventory management to advanced data analytics, technology helps streamline their supply chain and provide valuable insights to both brands and Kiranas. Their systems are integrated with those of their partners, ensuring real-time data flow and efficient operations.

Commitment to Sustainability

Flipkart Wholesale is deeply committed to sustainability. All their stores are equipped with solar panels, and they are on a mission to achieve 100 percent renewable energy usage. Additionally, they are transitioning to electric vehicles for last-mile deliveries, reducing their carbon footprint significantly. Their packaging practices emphasize reuse and recycling, further underscoring their dedication to environmental stewardship.

“Our packaging strategy involves systemic efforts from brands to customers, ensuring minimal waste,” adds Ayilavarapu.

Efficient Supply Chain Management

Flipkart Wholesale’s supply chain strategy emphasizes simplicity and efficiency. “All our stores receive direct shipments from brands, eliminating the need for aggregation or disaggregation. We have one fulfillment center as an experiment, but it operates like a store without a storefront,” Ayilavarapu explained.

Its forecasting is based on extensive historical data and insights from third-party research and brand partners, understanding seasonality and market dynamics well, allowing it to pivot quickly based on demand. Moreover, the company’s tight integration with brands ensures it manages inventory effectively, reducing non-moving stock and unlocking value for our customers.

Growth and Expansion

Flipkart Wholesale aims to maintain its growth trajectory. “We plan to grow by late teens percentage this year and continue that for several years, aiming for profitability and sustainability. Our focus is on densifying our current footprint and experimenting with innovative models to serve customers in smaller towns more effectively,” the spokesperson shared.

The company is also set on expanding its digital reach to better serve kiranas across India. “Digital engagement is key to reaching more kiranas economically,” Ayilavarapu concluded.