New Delhi: Amazon is ready to start food retailing business all over the country before Diwali. This information was given by informed sources of company plans. In this business, the company is going to move through its subsidiary Amazon Retail India Pvt Ltd. After that, he will also create a private grocery brand in the country, as it has done in the US before. Everyone at Amazon’s Food Retailing Business Plan is looking forward to this because the price war in this segment is expected to start. In fact, the American company has been running a strategy to sell products at attractive prices to entice customers.
Amazon has recently been allowed to sell and store food and groceries by government and online through physical stores. The company intends to invest $ 500 million in this segment in the next five years. Under this venture, Amazon will sell products made in India. He will sell these goods to the customers by buying from outside companies and under their brand.
The company currently offers food products of third party sellers under Amazon Pantry in some cities. He promises to deliver a grocery delivery in a day through the Amazon Now app under the agreement with retailers like Big Bazaar and HyperCity. However, this service is being offered in few cities. When asked about this, a spokesman for Amazon India said, “We do not comment on future plans.”
Amazon launched the first private grocery label in America last year. They started this business with coffee and baby food. In the US, private label items are typically sold through prime membership, and its price is lower than that of popular brands. Amazon is raising his grocery business in America. He has also opened offline Amazon Go stores, which provides check out Free Shopping Experience to customers.
The Indian government had tried to persuade Amazon to sell food products through physical stores, but the company has not yet decided on this. A source aware of this matter has given this information. He said, ‘I do not think that Amazon has such an intention – right now.’ However, one expert said that the company can do this further.
Devangshu Dutta, CEO of Retail Consultancy firm Third Eyesight, said, “Companies will have to take retail business as an integrated activity. If you are selling many products and are multi-brand company then you have to be present in multi-format. Amazon can also open physical stores later on. ‘