“Venturing into the private label landscape was a strategic move, in an attempt to offer our customers the finest quality, phenomenal value, with convenience at their doorsteps!” States Ahsan Kidwai Co-Founder & Chief Commercial Officer at Krave Mart
In response to consumer demand for excellent quality and reasonable prices, Krave Mart entered the private label market a few weeks ago.
With more than 16 categories consisting of 3000+ SKUs housing 100+ brands, Krave Mart began operations. The consumer base’s selection mix made sure there was a balance of both food and non-food items needed for daily life. The Private Labeling Initiative was Krave Mart’s next step.
Krave Mart successfully released 100+ private label SKUs with the goal of providing their clients with high-quality products that are filled with love, starting with the fundamentals like daily spices and kitchen essentials like eggs and sugar.
“With 100+ private label SKUs live on the platform today and increasing, the backward integration has enabled us to significantly improve on our availability ratio, keep quality controls in check and double down on our margins to drive sustainable growth.” Kidwai stated.
Current private label product includes:
- Kdaily (Spices, Eggs, Lentils, Value Added Flour & Dry Fruits.)
- Kfresh (Fruits & Vegetables, Exotic range of F&V)
- More products in the pipeline
In fact, margins from these products climbed by two times as much, demonstrating that they are essential components for Krave Mart’s sustainability and profitability in the current market landscape.
By far the quickest eCommerce/online platform in the area, Krave Mart launched a variety of private label SKUs quickly and was able to handle intermittent stock shortages that may have interfered with their goal of growth.
What is Private Labeling:
Private labeling refers to the practice of contracting with outside vendors to acquire, manufacture and package the product(s) before reselling them with a brand label that is uniquely your own. And Krave Mart primarily banked on this by designing their own labels.
Private Labeling comes with promising advantages which benefits organizations with:
- Customer Loyalty: It instills the sense of belonging in the existing consumers as they feel part of the few that have access to the limited edition products; thereby increasing loyalty and sales volume.
- High margins: Private labeling definitely yields higher margins as there are no branding and packaging premiums attached to the products being sourced directly.
- Exclusivity: Private labeling gives complete liberty to promise exclusivity to customers in terms of branding, good marketing and creating its demand that in terms gives an edge over brand retail products.
Karve Mart started with a humble beginning. Initially launching itself as a quick commerce company. Gradually it expanded its operations in Lahore & Rawalpindi, where it found a customer base it could cater to with its major USP of always being there when it came to ordering online groceries & more.
It has come a long way, including the step to taking up private labeling. As a result of Krave Mart’s commitment to customer-centricity and providing the ideal product mix, all of its suppliers are working toward the same goals of quality and sustainability in their operations.
As brands (who hold private labels) already have access to customer patterns, insights, and preferences that might not be as available to FMCG producers, private labeling is the future of consumer products with the potential to even lead the categories.