He may not be the most vocal supporter of his online competitors, but it hasn't stopped Future Group's Kishore Biyani from inking a deal with Amazon which will reportedly start with selling products from 45 apparel labels on the online marketplace and gradually expand to developing products across various categories.
According to an exclusive Economic Times report, Future group will start with 45 apparel brands and gradually begin selling in-house brands across various categories on the online marketplace while Amazon will handle delivery of orders and customer service for these products.
Amazon and Future Group will also reportedly develop new products across categories to be sold at retail stores jointly owned by them. And given Biyani's objection to sellers on e-retailers pricing their wares below traditional shops, don't expect the prices on Amazon to be very different from those in the stores.
"We are exploring several synergies in data sharing, co-branding, cross-promotion and distribution network sharing through the partnership," Biyani told the newspaper.
The deal comes soon after the meeting with Biyani and Amazon CEO Jeff Bezos during his recent trip to India.
An earlier report had said that the Future Group had attempted to forge similar tie-ups with Flipkart and Myntra in the past but had fallen through.
Biyani was a vocal opponent of the flash sales by online companies, accusing them of selling them lower than cost price of products and was dismissive of e-retailers saying that they only provided "technology for getting orders".
The Future Group's electronics store, Ezone, already has an online presence and adopts a hybrid approach to sales involving both online as well as traditional brick and mortar stores. The group has also been speaking about ramping up its presence online.
Biyani had earlier said that the group would initially take its fashion products online followed by FMCG and other products. The retailer had also said that they would go live with an omni channel strategy after Diwali, where existing physical stores start selling products online, to sell products in tandem with e-commerce.
Amazon chief Bezos, during his visit to India, spoke about the potential he saw for the fashion industry in the online space and the deal with Future Group could help boost its battle against Indian competitors like Flipkart that acquired online fashion retailer Myntra. Amazon is also reportedly in talks to acquire online fashion retailer Jabong.
F Biz 13 Oct 2014
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