It appears that Amazon INC., that is creating forays into brick-and-mortar grocery outlets within the U.S.A., is also looking to open food outlets in India. The Economic Times reported the online retail giant is seeking regulatory clearance for food-only outlets as well as an online platform. Which will sell native produce with a planned Rs 3,500 crores in investment over the next 5 years.
Amazon May Bring Food Retail Outlets In India
The company plans to trade food product through multiple channels like online as well as old style brick and mortar. Since selling through each private label and third party vendors. ET said citing a regulatory filing by a Singapore-based affiliate of
Amazon is making a push in physical retail with ‘Amazon Go’ within the U.S. With plans to open convenience as well as grocery stores, mounting competition for native mass retailers like Wal-Mart, according to media reports. These stores are designed to not have any checkout counters, reducing long lines. Hence it’s unclear if Amazon’s food retail plans in India are going to be under its Amazon Go brand. “Amazon Go is a great model — you just walk through. And as the future evolves and it becomes additional and additional digital. It also offers them the flexibility to do both,” said Malhotra.
India may be a focus area for Amazon. Hence that is that the 1st world big wig to take advantage of a June legislation that carved out a food-only retailing segment. Allowing 100 per cent foreign direct investment for companies selling locally sourced and made food items. Such ventures will sell through both brick-and-mortar stores and their online portals. Most alternative global retailers, as well as Walmart Stores INC. Which have cold-shouldered India’s bold easement move aimed at making countless jobs and helping farmers.
Minister for Food processing Harsimrat Kaur Badal, a proponent of FDI in food retailing, led a team of officials to London and met representatives of British companies including Tesco, Sainsbury’s, Harrods, Marks & Spencer and cobra beer to drum up support for the policy without any luck.