Mumbai: Alarmed at the Reliance Industries’ e-commerce 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 Future Retail Ltd 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 such as grocery and general merchandise, and fashion and footwear.
Future Retail currently attracts over 35 crore footfalls across its retail network such as 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.