E-commerce sites feel the heat of rising competition. What are they doing about it?

While there are a dime a dozen research reports predicting the Indian e-commerce industry’s stellar growth potential, don’t be fooled into thinking it is smooth sailing for the companies concerned.

The_Economic Times_ reports that given the increasing competition, especially from international giants like Amazon and ebay, Indian e-tailers are increasingly turning to private labels to set themselves apart from their competition.According to media reports, likes of FabFurnish and Pepperfry, dedicated to home furnishing, and fashion portals like Myntra and Jabong.com, have several in-house brands in the pipeline.

Exclusivity is one of the factors that makes private labels so appealing to e-commerce platforms. Ashish Jhalani, head of advisory firm eTailing India, toldToI,“Private labels build value for these companies…If a user wants a particular brand and it is available only on one site, then they will go to that site."

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One way e-commerce sites are playing up the private label concept is by roping in Bollywood stars to lend their names to the ventures, which was earlier reported by Firstbiz.

Actors like Malaika Arora Khan and Hrithik Roshan have tied up with e-commerce ventures like Myntra and The Label Corp to launch private clothing and lifestyle lines. Celebrities get a cut of the royalties and often have minority stakes in the enterprises in question.

Read the entire_ET_article here.