Amazon is partnering with Indian Retail Group, Future Retail, to expand the reach of Future Retail’s stores through Amazon’s marketplace. The deal will see Amazon become the official online sales channel for Future Retail.
Authorised online sales channel
Amazon India will become the authorised sales channel for Future Retail stores, enabling the latter to reach a wider customer base. Future Retail currently has 1,500 stores, attracting over 350 million footfalls annually across its retail network.
In a statement, the organisations said they “will work towards driving sales, achieving operational efficiencies, collaborating on technical excellence, in relation to online sales”.
Focusing on key categories
Amazon and Future Retail will focus on two key categories: grocery and general merchandise, as well as fashion and footwear. Future Retail will list its products on Amazon’s Prime Now service, offering customers delivery on food, grocery, and general merchandise ranges within two hours. The service will be available in Delhi, Mumbai, Bengaluru, and Hyderabad. Future Retail stores including Big Bazaar and Foodhall will also be listed shortly in more cities on the Amazon India marketplace.
Future Retail will “augment its existing store infrastructure” at its retail stores to facilitate seamless packaging and pickup of products ordered online. The service was initially launched across 22 stores, with encouraging results according to the retailer’s, with wide scale-up planned.
The next piece of Amazon's roll out
The new partnership is another step towards Amazon's roll out in the Indian market. In August 2019, Amazon India commenced its fresh grocery delivery business in India, operating under the Amazon Fresh banner. Shortly after, Amazon opened its latest campus in India, reaffirming its commitment to the Indian ecommerce market. The 9.5 acres site houses employees from all divisions, including Amazon Web Services. In September 2019, Amazon doubled its delivery network in India ahead of its flagship sales event, Amazon Great Indian Festival Sale. Amazon significantly expanded its supply chain network throughout India to more than 1,400 delivery stations across 750 cities.
Keep up to date with developments at Amazon
See the latest Amazon news here and IGD Retail Analysis subscribers can learn more from our Amazon Strategic Outlook presentation.