Brands
Pepe Jeans partners with GoKwik for COD expansion in India
Mumbai: Pepe Jeans London, the iconic denim brand celebrated for its modern and stylish fashion selections, has formed a strategic partnership with GoKwik, a prominent eCommerce platform. Together, they aim to enhance Pepe Jeans’ online presence in India by extending Cash-on-Delivery (COD) services securely and embarking upon the issue of Return to Origin (RTO) rates. Utilizing GoKwik’s extensive network intelligence with over 100 million shoppers, Pepe Jeans aims to diminish non-deliverable COD orders and fortify its position in the ever-evolving digital commerce landscape.
GoKwik is set to assist Pepe Jeans London in expanding its digital presence by extending Cash-on-Delivery (COD) services to a broader range of postal codes. This expansion will harness GoKwik’s network-driven intelligence to curtail the incidence of Return to Origin (RTO). RTO occurs when COD orders are annulled during transit, leading to increased logistical expenses, inventory blockages, and potential product damage, all of which can impact the brand’s overall profitability.
Speaking on the partnership Pepe Jeans India CEO & MD Manish Kapoor said, “The Indian eCommerce sector holds significant promise and displays substantial potential in the years ahead. Cash on delivery is a distinct preference for the majority of Indian consumers, and this preference brings with it the intricate issue of RTO.” He further explained, “Our collaboration with GoKwik will further expand our ability to offer Cash-on-Delivery services in remote regions of India. Utilising their advanced intelligence solutions, we aspire to broaden our presence among various consumer demographics, ultimately enhancing our Gross Merchandise Value (GMV) and mitigating the challenges linked with COD orders.”
Cash-on-Delivery (COD) enjoys widespread popularity in India and is a crucial payment method for ensuring long-term business expansion. Nevertheless, a significant challenge arises, as more than 30 per cent of COD orders are returned to the warehouse during shipment, resulting in profit leakage for brands. In certain scenarios, such as for Direct-to-Consumer (D2C) brands, this return rate can skyrocket to as high as 60 per cent, with the fashion category being the most affected.
GoKwik is renowned for its comprehensive data-backed intelligence solutions that analyse shopper behaviour patterns across 200 parameters. It then ranks shoppers under different risk buckets based on their probability of returning orders before delivery, and then places controlled interventions to safely expand COD serviceability while keeping a check on the RTO rate. Through these unique solutions, GoKwik has helped several brands save over Rs 130 Cr of RTO losses.
“We are constantly committed to building solutions that help eCommerce brands grow at a high speed yet sustainable pace,” stated GoKwik co-founder & CEO Chirag Taneja. “Pepe Jeans have a legacy that is now continuing in the digital space. Through our data-backed intelligence, we aim to unlock their COD GMV by deepening their COD penetration while also minimising their return losses. Look forward to seeing them grow at a phenomenal rate with us” Chirag continued.
The collaboration between Pepe Jeans and GoKwik underlines their joint dedication to utilizing technological advancements and their deep industry knowledge to push the boundaries of online retail. Their mission is to address the requirements of Indian shoppers and establish a smooth, hassle-free shopping experience for fashion enthusiasts throughout the country.
Brands
Flipkart completes reverse flip to India ahead of IPO
Walmart-owned e-commerce giant shifts domicile from Singapore to Bengaluru
MUMBAI: Flipkart has completed its restructuring to move its parent company from Singapore back to India, marking a key milestone as the Walmart-owned marketplace prepares for a potential initial public offering on Indian stock exchanges, ET reported, citing people aware of the matter.
The move, often referred to as a “reverse flip”, relocates the company’s legal home to India and aligns its corporate structure more closely with its largest market. It also clears an important regulatory step for Flipkart as it explores listing plans.
As part of the restructuring, several Singapore-based entities have been merged into Flipkart Internet Private Limited, which will now serve as the main holding company for the entire group.
The consolidation brings a number of major businesses directly under the Indian parent company. These include fashion platform Myntra, logistics arm Ekart, travel booking platform Cleartrip, healthcare marketplace Flipkart Health, and fintech venture Super.money.
Under the new structure, global investors including Walmart, Microsoft, SoftBank, and the Canada Pension Plan Investment Board will hold their stakes directly in the Indian entity rather than through an overseas holding company.
The redomiciliation required approval from the Indian government because Chinese technology company Tencent owns around a 5 to 6 per cent stake in Flipkart. Under Press Note 3, investments from countries sharing a land border with India require prior government clearance.
Flipkart had already secured approval from the National Company Law Tribunal in December. With the latest clearance from the central government, the company has now obtained all the regulatory approvals needed to complete the relocation, ET reported earlier.
Flipkart had originally shifted its holding structure to Singapore in 2011 to tap global capital more easily. However, as India’s capital markets have matured, several start-ups have begun returning their domiciles to the country ahead of public listings. Companies such as Razorpay, Groww, and Meesho have taken similar steps.
The company is now expected to move ahead with its IPO preparations and has begun early discussions with merchant bankers. According to people familiar with the matter, Flipkart could file its draft prospectus later this year, setting the stage for what may become one of the most closely watched listings in India’s e-commerce sector.
Flipkart has been majority-owned by Walmart since 2018, when the US retail giant acquired a 77 per cent stake in the company for $16 billion in one of the largest e-commerce deals globally.
