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Biyani's tie up with Amazon to help him boost sales, profits

Will sell his private labels across categories such as apparel, food, FMCG on Amazon and share back-end facilities

Raghavendra Kamath nbsp;nbsp; Anika Soni  |  Mumbai/New Delhi 

Kishore Biyani’s could generate higher volumes and improve profits through reduced fixed costs and supply-chain expenses if talks with go through.

Biyani is in talks with to sell his private labels and sharing back-end facilities.

On the other hand, would get a number of brands on its portal that would help it drive footfall, consultants said. The has private labels across categories such as as apparel, food and fast-moving consumer goods (FMCG).

“We are yet to finalise the name of the players we will tie up with. It could be Amazon, Flipkart or anyone else, but there will soon be a tie-up,” Kishore Biyani, chief executive of the Future group, said.

“Our own online venture is part of our omni-channel strategy, which is an extension of physical Our tie-up with an player will be about the entering into pure It is a significant move for us,” Biyani said. The group recently unveiled its omni-channel strategy to sell products.

“The Future group has many formats and operates in many categories. They need alternative channels to market their products. The deal with Amazon will give them new a channel to reach customers,” said Dipankar Halder, chief executive of and former head of Bharti supermarkets. “Besides volumes, it can also improve their profitability due to lower costs in operations,” he said.

Added Prashant Agarwal, joint managing director at Wazir Advisors, “Amazon today supplies goods across the country. The Future group can get access to all those cities without being present.” He said the Future group could drive cost efficiencies in logistics, supply chain and sourcing.

Amazon is also expected to gain from the deal. “The Future group’s distribution centres supply to stores across the country. Amazon can make use of those centres and reduce logistics costs,” said Halder of

According to Agarwal, Biyani’s private labels will also boost Amazon’s portfolio. “More the brands, more the footfalls. If Amazon seals the deal, it can sell many brands of the Future group online,” he said.

First Published: Sat, October 04 2014. 00:03 IST
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