Kishore Biyani-controlled Future Group on Monday announced a partnership with Amazon India by which the retailer will sell its merchandise exclusively online.
Under the partnership, Future Group’s current portfolio of over 40 brands will be retailed exclusively online through the Amazon.in platform.
The deal comes after much criticisms from Kishore Biyani over Flipkart Big Billion Day Sale and other e-commerce retailers in India offering deep festive season discounts. Amazon.in itself started its Diwali Dhamaka sale between October 10-16, but did not go with the kind of heavy discounts that Flipkart and Snapdeal did last week. In fact, both Flipkart and Snapdeal claimed to have sold Rs 600 crore worth of products each on a single day of sale.
The organised retail entrepreneur had questioned the rationale behind investors committing billions of dollars to India’s e-commerce sector in the recent past.
The Future Group chief, known as the father of Indian retail, had also expressed concern that online retailers, flush with cash, may eventually look at buying into traditional brick and mortar companies.
The maverick entrepreneur had earlier dismissed speculation that he would launching a major e-commerce initiative soon.
The group operates some of India’s biggest retail chains including Big Bazaar, eZone, Brand Factory and Home Town.
Future Group’s alliance with Amazon is further evidence that traditional retailers in India have decided to join hands with e-commerce players rather than resist them. Croma, the electronics chain owned by the Tata Group, signed a similar agreement with Snapdeal last month. (With input from agencies)
