Flipkart Challenge: Future Group ties up with Amazon

futureIndia’s largest listed retailer Future Group and world’s online giant Amazon have signed a deal to jointly sell their merchandise exclusively online in order to counter the online retailers who offered heavy discount in Indian market during the festive season.

Under the partnership, Future Group will sell more than 45 own labels of apparel initially, followed by in-house brands in the home, electronics and food categories, while the US-headquartered company will handle order fulfillment and customer service for the merchandise on its portal.

“Partnership with Amazon will enable us to leverage their strengths, investments and innovations in technology to reach out to wider set of consumers across India,” commented Kishore Biyani, Group CEO of Future Group, on this tie-up.

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The deal comes after much criticism from Biyani over Flipkart Big Billion Day Sale and other e-commerce retailers in India. Future Group accused Flipkart of adopting anti-competitive strategy by selling products below cost price which will compel the vendors to sell the products at lower than their buying prices.

Meanwhile, 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.

However, Future Group’s alliance with Amazon is further evidence that traditional retailers in India have decided to join hands with e-commerce players which will definitely create a tough competition for online retailer like Flipkart.

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