Under the agreement, Amazon India will act as the authorised online sales channel for Future retail stores which would also include BigBazaar. Furthermore, the two will be focusing on key categories like grocery and general merchandise, and fashion and footwear.
This partnership will enable Amazon to leverage Future Retail’s robust infrastructure of over 1500 stores to expand into the offline space. While also enabling Future Retail to augment existing store-infrastructure at its retail outlets for facilitating seamless packaging and pickup of products ordered online. This service has already been launched by the two across 22 states.
Kishore Biyani, Chairman and Managing Director of FRL, said, “This arrangement will allow us to build upon each other’s strengths in the physical and digital space so that customers benefit from the best services, products, assortment and price”.
Future Retail is India’s second-largest retail chain with over 1,500 stores spread across more than 400 cities in the country. It also attracts over 350 million footfalls per year across its retail network which will enable Amazon to reach a wider customer base.
Taling about the partnership, Ashni Biyani, Managing Director, Future Consumer Ltd, said, “We will be working closely with Amazon to develop marketing and promotion initiatives and look forward to using Amazon’s technical expertise and resources to increase the reach of our brands. Our distinct portfolio of brands catering to aspirational categories will be an excellent addition to Amazon’s offerings. Hence, we believe this is a win-win agreement.”
With India’s retail market expected to reach $1200 billion by 2021 from $672 billion in 2017, this partnership offers a significant growth opportunity for Amazon in India.