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Amazon Made its food retailing debut in India in the month of August that is

during the Diwali of 2017.


Amazon recently got government approval for stocking and selling food and
groceries in India online and through brick and-mortar stores .
The company plans to invest $500 million in the segment over the next five
years.

The brick and mortar retailers that are collaborating with Amazon in India
would be benefitted by Amazon’s large base of customers.

Amazon launched it’s own website called Amazon Pantry where they sell
food products and other goods.

In order for people with smartphones to connect to this website in the most
convenient way, amazon has also created an app called Amazon Now
where the consumer could select his preferred retail store and order
products from there via selection of the products and variety of gateways
for payment. They offer Cash on delivery option as well.

Amazon basically gives scalability opportunity to these Brick and mortar


retail stores as the customers wont have to visit the stores each time they
want to make a purchase of items. The consumer can just order the
products through the third party app of Amazon and get the products
delivered within the minimum time of 2 hours after placing the order.
Amazon also takes the responsibility of delivering these products to these
households.

Before amazon entered in this segment, e-commerce websites like grofers


and bigg basket were competing with these retailers(year). These websites
took away a considerable portion of customers from these retailers. (facts)
(number of customer base)

With amazon entering the market with their end-to-end logistic support,
these retailers who have tied up amazon, now have an increased market
penetration.

Hence, now these organized retailers can not only survive but also
compete in such digital invasion.

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