Groceries to Fashion: Amazon, Future Group expand partnership to boost products available online

From food to footwear and fashion to homeware, the Amazon-Future Group partnership will list the products available at Future Group's network of stores nationwide and the retail chain's own brands in various categories on Amazon Prime Now and Amazon.in

By Harichandan Arakali Forbes India Staff

Published: Jan 6, 2020 01:36:49 PM IST

Updated: Jan 6, 2020 01:38:05 PM IST

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Groceries to Fashion: Amazon, Future Group expand partnership to boost products available online

Amit Agarwal, senior VP and country head, Amazon India
Image: Nilotpal Baruah

Amazon and Future Group have expanded their partnership to take the products from the Indian retail chain’s stores—ranging from groceries to fashion—online.

As part of the deal, Future Group’s own brands in various categories will also be sold on Amazon’s online marketplace, the companies said in a press release on January 6.

“As part of the agreements, Amazon India will become the authorised online sales channel for Future Retail Limited’s (FRL) stores and FRL will ensure the participation of relevant FRL stores on the Amazon India marketplace, and its programmes,” according to the press release.

Ecommerce giant Amazon is in a race to capture the largest share of India’s online commerce market, competing against Walmart’s Flipkart unit and Paytm, which is backed by China’s Alibaba. In August 2019, Amazon agreed to acquire a minority stake in Future Retail, with an option to purchase all of the promoter’s holdings in the business. Amazon also owns 5 percent of departmental store chain Shoppers Stop.

For physical retailers such as Future Group, the partnership with Amazon will help expand its consumer base and improve its prospects of competing for the consumer’s wallet as more people turn to their smartphones to order their everyday needs. Categories such as groceries are highly under-penetrated online in India.

Customers will get the convenience of ordering on physical and digital channels for a wide range of food, FMCG, fashion, footwear and homeware categories. FRL will list on the Amazon Prime Now programme, allowing customers to get food, grocery and general merchandise delivery within two hours in Delhi, Mumbai, Bengaluru, and Hyderabad. FRL will soon list stores like Big Bazaar and Foodhall in more cites on the Amazon India marketplace, Amazon and Future Group said in their release.

Kishore Biyani, Chairman & Managing Director, Future Retail Limited
Image: Mexy Xavier

“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,” Kishore Biyani, Chairman & Managing Director, Future Retail Limited, said in the release.

“FRL’s national footprint of stores offering thousands of products across fashion, appliances, home, kitchen and grocery will now be available to millions of customers shopping on Amazon.in, in hours across 25-plus cities,” said Amit Agarwal, senior VP and country head, Amazon India.

The two companies have also agreed to sell Future Consumer Limited’s own brands across categories on Amazon.in. Future Consumer has brands and products in multiple categories in food, home care and personal care and beauty. These brands include Tasty Treat for snacks, Voom for fabric care, Dreamery for dairy, Karmiq for dry fruits, Mother Earth for organic staples, Kara for personal care and CleanMate for household cleaning. Future Consumer’s brands are currently available across multiple channels including general trade, digital platforms and retail. The brands are also available at more than 1,700 stores across Future Group’s retail chains including Big Bazaar, EasyDay, Heritage Fresh, Nilgiris and WH Smith.

Currently, Future Consumer has a largely offline presence. Through this agreement, Future Consumer will build an online channel and offer Future Consumer’s brands to millions of Amazon customers.

“The collaboration with Amazon will expand the reach of our brands to new sets of customers on Amazon India’s online marketplace. 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,” Ashni Biyani, managing director, Future Consumer Limited, said in the release.

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