Saturday January 25, 2020
Home Business Amazon and Fu...

Amazon and Future Group Sign Agreements to Compete Reliance JioMart

Amazon India rides on Future Group to face Reliance's JioMart

0
//
Amazon
Amazon India will become the authorized online sales channel for Future Retail stores. Pixabay

Alarmed at the Reliance Industries Ltd’s ecommerce push in 2020 with online retail arm JioMart that will deliver groceries and other household essentials, Amazon India and the Kishore Biyani-led Future Retail Ltd (FRL), part of the Future Group, on Monday announced long-term agreements to expand the reach of Future Retail stores and consumer brands through the Amazon India marketplace.

Amazon India will become the authorized online sales channel for Future Retail stores and FRL will ensure the participation of relevant stores on the Amazon India marketplace, and its programmes, the companies said in a statement.

The agreements focus on key categories like grocery and general merchandise and fashion and footwear.

Amazon Reliance
Reliance Retail’s entry into the online retail sector is the biggest challenge for Amazon and Walmart-Flipkart. Wikimedia Commons

Future Retail currently attracts over 35 crore footfalls across its retail network like Big Bazaar and Foodhall.

“Amazon and Future Retail share common values of serving customers everywhere in the best possible manner,” said Kishore Biyani, Chairman and Managing Director, Future Retail Limited.

“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,” he added.

The grocery segment is a big growth area in 2020.

Announced last week, JioMart will list over 50,000 products and will offer no questions asked return policy.

Currently in the soft-launch period, JioMart will provide savings up to Rs 3,000 to those who pre-register for JioMart before the platform goes live.

Reliance Retail’s entry into the online retail sector is the biggest challenge for Amazon and Walmart-Flipkart as the Mukesh Ambani-led behemoth is well positioned to create massive disruption in the market.

Reliance Retail operates 10,415 stores in more than 6,600 cities and towns, with 500 million annual footfalls – giving the company the kind of scale required to swiftly launch India-based operations.

“We have seen players like Grofers (backed by SoftBank, Tiger Global and Sequoia Capital) making inroads into the grocery segment. Social commerce will be another big growth area in 2020,” according to Satish Meena, Senior Forecast Analyst with Forrester.

Amazon India
FRL will ensure the participation of relevant stores on the Amazon India marketplace, and its programmes. Wikimedia Commons

“The viability of the existing and upcoming ecommerce players will be tested big time in 2020,” he added.

Future Retail Ltd 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.

The company will soon list stores like Big Bazaar and Foodhall in more cities on the Amazon India marketplace.

“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 over 25 cities,” said Amit Agarwal, SVP and Country Head, Amazon India.

Future Retail is present in more than 400 cities with over 1,500 stores that cover over 16 million square feet of retail space.

Last year, Amazon agreed to acquire a 49 per cent stake in Biyani’s Future Coupons, which owns 7.3 per cent of Future Retail. According to reports, Future Group’s Republic Day ‘Sabse Saste Din’ sale will also feature on Amazon.

In a separate announcement, Future Consumer Limited (FCL) and Amazon Retail India Private Limited (ARIPL) signed a long-term agreement for distribution of Future Consumer’s portfolio of brands online.

Also Read- Children Facing Behavioural Issues More Like to Be Anti-Social: Study

“Thiss collaboration with will expand the reach of our brands to new sets of customers on its online marketplace,” said Ashni Biyani, Managing Director, Future Consumer Limited.

“We are delighted to have Future Consumer’s strong brand portfolio added in, such as Golden Harvest and Desi Atta for staples, ready to eat food from Tasty Treat and dry fruits from Karmiq,” said Sameer Khetarpal, Director, ARIPL. (IANS)

Next Story

India Becomes the Second Largest Smartphone Market After China: Report

India surpasses US to become 2nd largest smartphone market

0
Smartphone
The Indian smartphone market surpassed the US for the first time on an annual level. Pixabay

New Delhi: Riding on Chinese brands, the India smartphone market surpassed the US for the first time on an annual level and this is the latest science and technology news, becoming the second-largest smartphone market after China globally — reaching 158 million shipments in the calender year 2019 with 7 per cent (YoY) growth, a report from Counterpoint Research said on Friday.

While Xiaomi continued to be the top player with 28 per cent market share in the calendar year 2019, Samsung was second with 21 per cent and Vivo at 16 per cent market share, said Counterpoint’s ‘Market Monitor’ service.

Smartphone
India has now become the second-largest smartphone market after China globally. Pixabay

“Although the rate of growth for smartphone market hit single digit for the first time ever on an annual basis, India is underpenetrated relative to many other markets with 4G penetration in terms of subscribers being around 55 per cent,” said Tarun Pathak, Associate Director, Counterpoint.

“Chinese brands share hit a record 72 per cent for the year 2019 as compared to 60 per cent share a year ago.

“This year, we have seen all major Chinese players expanding their footprint in offline and online channels to gain market share. For instance, Xiaomi, realme, and OnePlus have increased their offline points of sale while brands like Vivo have expanded their online reach with Z and U series,” said Anshika Jain, Research Analyst at Counterpoint.

Over the past four years, Xiaomi, Vivo, and OnePlus have grown 15 times, 24 times and 18 per cent, respectively.

“This highlights that OEMs are mature enough to capture next wave of growth and expand their operations in India,” Jain added.

Smartphone
Although the rate of growth for smartphone market hit single digit for the first time ever on an annual basis, India is underpenetrated relative to many other markets with 4G penetration in terms of subscribers being around 55 per cent. Pixabay

Samsung shipments remained almost flat (YoY) while it has shown a 5 per cent (YoY) decline in 2019.

“This is for the first time Samsung transitioned to a completely new portfolio targeting different channels (offline with A series and online with M series). However, it needs to double down its efforts to keep the momentum going,” the report noted.

While the smartphone market registered YoY growth, the feature phone market witnessed a steep decline of nearly 42 per cent YoY in 2019 and 38 per cent (YoY) in Q4 2019.

Also Read- Amazon’s Music Streaming Service Hits 55 Million Subscribers Globally

“This is due to slowdown in the new shipments from Reliance Jio. However, the players such as itel, Lava, Nokia and Micromax registered positive annual
growth despite the overall segment declined showing the untapped potential of the market,” said the report.

In fact, itel emerged as the number one feature phone brand in Q4 2019, followed by Samsung and Lava. (IANS)