Online marketplace Amazon and Indian Brick and Mortar retailer-Future Group has signed an agreement to sell goods online. As part of the deal, both firms are expected to develop a new line of products across categories to be exclusively sold at Amazon and Future Group’s retail stores and targeting sales of INR 6,000 crore in next 3 years through the alliance.
As per an ET report, Future Group will sell more than 45 in-house labels of apparel initially, followed by in-house brands in the home, electronics and food categories, while Amazon will handle order fulfillment and customer service for the merchandise on its portal.
“We are exploring several synergies in data sharing, co-branding, crosspromotion and distribution network sharing through the partnership,” Future Group’s Kishore Biyani told to the News Paper.
In past, Future Group had also made tie-ups with Flipkart and Myntra. It’s electronics store, Ezone, already has an online presence and has plans to revamp it. Initially, the group is expected to take its fashion products online but the service will go live with an omni channel strategy after Diwali.
According to Amazon CEO Jeff Bezos, this move will boost its battle against Indian competitors like Flipkart and Snapdeal. Previously, Amazon is also looking to open its first brick-and-mortar store in New York and reportedly in talks to acquire online fashion retailer Jabong.
Recently, post Flipkart’s Big Billion Day sale fiasco, Kishore Biyani spoke against such campaigns “How can someone sell products below its manufacturing price? This is legally not allowed in the country. Someone can do such undercutting only to destroy competition. Just because they have foreign funding, they can’t kill local trade like that,”
Hence it can be assumed that omni-channel strategy would be a good way to stick to his stand.
Apart from this, in August this year, Future Group has launched the B2C store for Bigbazaar Direct targeting 50,000 franchisees by the end of the year through this Franchisee based business model.
Feature Image Source: ET