Amazon India, Future Retail sign long-term business deal
06 January 2020
Amazon India has entered into long-term business agreements with Future Group, in a move that will help the retail stores and consumer brands sell products on the online marketplace.
Amazon had, last year, agreed to buy 49 per cent stake in Future Coupons Ltd, which in turn holds stake in Future Retail Ltd (FRL).
"FRL and Amazon India signed two agreements focusing on key categories - grocery and general merchandise, and fashion and footwear," according to a statement released on Monday.
“Future Retail Ltd (FRL) and Amazon India had entered into long-term business agreements for expanding the reach of FRL stores and consumer brands through the Amazon India marketplace. This arrangement will now build on the robust offline and online capabilities of both organisations creating significant value for customers.
“FRL will leverage its existing infrastructure, strong product knowledge and extensive brand portfolio resulting in higher store productivity and improved margins.
“Currently, FRL attracts over 350 million footfalls across its retail network, and Amazon India’s marketplace will enable FRL to reach a wider customer base. This collaboration will drive synergies through FRL’s well-entrenched consumer-centric national network and Amazon India’s tech enabled distribution footprint,” a Future Retail web release stated.
Amazon India will become the authorised online sales channel for FRL stores, and FRL will ensure participation of its relevant stores and programmes on the Amazon India marketplace, it added.
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.
FRL and Amazon India signed two agreements focusing on key categories such as grocery and general merchandise and fashion and footwear.
FRL will also augment existing store-infrastructure at its retail outlets for facilitating seamless packaging and pickup of products ordered online.
FRL and Amazon India have already launched this service across 22 stores and is now scaling up operations. Both companies plan to roll this out across the entire FRL store chain based on agreed timelines.
“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,” said Kishore Biyani, chairman and managing director, Future Retail Limited.
“We are excited about the business collaboration with FRL. 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+ cities,” said Amit Agarwal, SVP and country head, Amazon India.
These agreements will enhance choice and convenience for Amazon India’s customers and will help FRL engage with a broader set of customers seamlessly across channels. Both organisations will work towards driving sales, achieving operational efficiencies, collaborating on technical excellence, in relation to online sales.