The fair trade regulator, the Competition Commission of India (CCI) has given a go-ahead to Amazon to acquire 49% in Future Coupons.
Future Coupons is a subsidiary of Future Group, which owns 7.3% of Future Retail (owner of Big Bazaar brand), and through the deal, Amazon will own 3.58% stake in the brick-and-mortar retailer.
The deal is expected to give Future Group a big boost in the online retail space, an opportunity, which has eluded Kishore Biyani-owned Future Retail, which owns Big Bazaar. For Amazon, it gets better presence in India’s offline retail. Amazon has also invested in Shoppers Stop.
Amazon has been testing a two-hour delivery model for Amazon Now customers. “In addition, the Future Group and Amazon companies will operationalise business partnership agreements to jointly promote and sell FMCG and fashion brands on Amazon platforms,” First Post reported.
Also, most leading brands will now have dedicated brand portals or storefronts on Amazon. “Following the approval, Future Consumer, the FMCG arm of Future Group will leverage Amazon’s partnership with Future Group to develop it as a significant alternate channel for selling its brands,” said the source, commenting on Future Group’s private label strategy.
Full Content: First Post
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