“I don’t think Amazon wants to own a piece of retail, they want to own all of it.” — Scott Galloway, a professor of marketing at NYU Stern.
According to the agreement signed between Amazon & Future Retail Limited (FRL) earlier this week, Amazon will be selling FRL’s products on its online platform whereas FRL will be providing its stores and warehouses for use to Amazon.
In November 2019, CCI had allowed Amazon to acquire 49% stake in Future Coupons that owns 7.3% of Future Retail. Both the companies will expand and provide quality goods and services to the customers at appropriate prices.
The retail industry constitutes about 10% of India’s GDP with a value of USD 792 billion as of 2018. India is the 4th biggest destination for retail in the world. Also, since the organized retail market is only about 12% of the industry, there lies immense potential to grow in India. According to the estimates, India’s retail industry should grow to $1.1 trillion in 2020.
Amazon, the behemoth of which it is said that it destroys everything in its path to get what it wants, is setting sights on India, and everyone is watching. Will it be able to get what it wants?