Ecommerce giant Amazon is reportedly planning to set up food retail stores in India.
The company plans to trade food products through multiple channels such as online as well as old-fashioned brick and mortar, selling through both private label and third party vendors.
An Amazon spokesperson said,
“We are excited by government’s continued efforts to encourage FDI in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision.”
Amazon is making a push in physical retail with ‘Amazon Go’ in the US, with plans to open convenience as well as grocery stores, mounting competition for local mass retailers such as Wal-Mart, according to media reports. These stores are designed to not have any checkout counters, reducing long lines. It’s unclear if Amazon’s food retail plans in India will be under its Amazon Go brand.
“We have sought an approval to invest and partner with the government in achieving this vision.What might work well is opening some concept stores to showcase some of the products,Opening some stores in select locations, airports, high streets, malls to showcase the breadth of the offering — that might be done. In this case, it gives the flexibility to do that.”
said Abhishek Malhotra, a partner at AT Kearney.