Kishore Biyani-led Future Group today entered into a strategic alliance with e-commerce player Amazon India to sell its merchandise exclusively online.
The alliance comes days after Biyani, who is known as a pioneer of Indian retail chains, had criticised Flipkart and other e-commerce retailers in India for under-cutting the market and selling products at even below the cost price, saying that it would hurt other retail channels.
The American e-commerce giant founder Jeff Bezos had met Biyani during his recent visit to India.
Future Group's partnership with Amazon will start with fashion merchandise and eventually extend to all categories. Its current portfolio of over 40 brands including Lee Cooper, Converse, Indigo Nation, Scullers or Jealous21 will be retailed exclusively online through the Amazon.In platform.
Future-Amazon partnership is the latest in a series of such moves by traditional Indian merchants. Tata Group's electronics chain Croma had signed a similar agreement with Snapdeal.Com last month.
The alliance announced today will leverage strong product knowledge, extensive brand portfolio and sourcing base of Future Group, and the e-commerce platform, customer base and reach of Amazon.In.
Amazon India will also assist Future Group accelerate new product development in categories that are currently not served by traditional retailers, the two firms said.
Future Group operates some of India's biggest retail chains including Big Bazaar, eZone, Brand Factory and Home Town.
"The bottomline in each of our retail success stories is 'know your customer'. Insights into the soul of Indian consumers - how they operate, think, dream and live - helps us innovate and create functionally differentiating products and experiences.
"Partnership with Amazon, which obsesses to be earth's most customer-centric company, will enable us to leverage their strengths, investments and innovations in technology to reach out to wider set of consumers across India," Future Group said in a statement.
Commenting on the tie-up, Biyani said: "Partnership with Amazon, which obsesses to be earth's most customer-centric company, will enable us to leverage their strengths, investments and innovations in technology to reach out to wider set of consumers across India."
Amazon India Vice President and Country Manager Amit Agarwal said: "We are excited to collaborate, leverage each other's unique strengths and serve customers across India. The product portfolio of Future Group, their innate understanding of the Indian consumer mindset and our ability to serve and deliver a convenient, easy, trusted and reliable delivery experience to a nationwide set of customers is a win-win for all.
