Business

Targeting India's Offline Market, Amazon Buys Shares In Shoppers Stop

News World India | 0
2979
| September 24 , 2017 , 14:50 IST

Seeking to target the majority of the Indian market, which was out of the American e-commerce giant Amazon' reach, the company has decided to get some stake in the country's offline market as well.

According to the retail giant Shoppers Stop, Amazon has bought a 5 percent stake in the company.

"The Board of Directors approved a proposal to issue 5 percent or 43,95,925 equity shares on preferential basis to Amazon.com NV Investment Holdings LLC at Rs 407.78 per share aggregating to Rs.179.26 crore," announced the Raheja Group owned retailer in a BSE regulatory filing.

This comes as no surprise given Amazon's persistent attempt to best its arch-rival in Indian market Flipkart. The Indian online retailer also recently started its first offline store in Bengaluru through Myntra.

On the other hand, the Indian online market is estimated around just 2 percent of the total retail in India. The companies are bound to move towards the majority of the retail market it's missing on.

ALSO READ: Happy Diwali For Xiaomi, Sells Over 1 Mn Smartphones In Festive Sales!

Amazon said, "Shoppers Stop is a leading fashion retailer in India. This segment of the market is under-penetrated and unorganised. We see a big potential in Shoppers Stop to disrupt this segment and want to be part of their growth story."

Shoppers Stop also made a statement arguing that the new partnership will create an "omni-channel retail experience" for consumers by leverage Shoppers Stop's brand assortment and Amazon's reach.

The retailer's Managing Director Govind Shirkhande said, "In line with our omni-channel retail vision, we have strengthened our partnership with Amazon.in to deepen our presence in the online space."

Promising further investment in India, Fashion Head of Amazon, Arun Sirdeshmukh said, "In line with this effort, we have entered into a bespoke partnership which enables two leading brands in the retail sector to draw upon each other's strengths to serve the customer base in India."

This sale will also provide the offline retailer to have a premier store on Amazon's online store where it can sell its products.

Amazon will also set-up its experience centres in 80 Shoppers Stop stores across India for the customers to experience Amazon's assortment.