Amazon deepens its relationship with India's second largest retail chain, Future Retail, as the e-commerce giant expands its presence in one of its key overseas markets.
The two announced on Monday that they have entered into a long-term business agreement to expand the reach of future retail businesses across the Amazon India market. Future Retail operates more than 1,500 stores across India, but has not yet aggressively investigated online sales.
Under the agreement, Amazon India will become the authorized online sales channel for future retail stores, including the Big Bazaar department store and grocery chain and the lifestyle grocery store Foodhall. In addition, India's second largest retail chain, which through its network attracts more than 350 million visitors annually, will post its items on Amazon's two-hour Prime Now shipping platform, which currently operates in Delhi, Mumbai, Bengaluru and Hyderabad.
The two giants agreed to focus on food – a category Amazon Amazon has been working on in India for some time – general merchandise, fashion and clothing, and beauty products.
Future Retail will expand the existing branch infrastructure in its branches to enable seamless packaging and collection of products ordered online. The two have already introduced this service in 22 branches, and the initial results have been "encouraging," they said.
Future Consumer, part of Future Retail, has also entered into a long-term partnership with Amazon to ensure online distribution through the Amazon India market.
Future Consumer offers a wide range of food, household, personal care and beauty products and has a number of own brands such as Tasty Treat for snacks, Voom for textile care, Dreamery for dairy products, Karmiq for dried fruit and Mother develops earth for organic staples, Kara for body care and CleanMate for household cleaning.
Kishore Biyani, chairman and managing director of Future Retail, said the partnership would allow us to "build on each other's strengths in the physical and digital space so that customers benefit from the best services, products, ranges and prices."
The announcement comes today, a few months after Amazon bought shares in Future Coupons from Future Retail – representing 3.58% of the retail group's India business – and a few days after India's largest retail chain, Reliance Retail, launched its e-commerce – Founded company.
"Future Retail's national presence in stores offering thousands of fashion, home appliance, household, kitchen and grocery products will now be available to millions of customers shopping on Amazon.in in more than 25 cities within a few hours "said Amit Agarwal, SVP and Country Head of Amazon India, in a statement.
According to the research firm Technopak Advisors, retail in India is estimated to be $ 188 billion in the next three years, from $ 79 billion in 2018. Online sales still make up less than 5% of total retail.