Tuesday in CE: Amazon Turns to Stores in India to Improve Sales
As it looks to make deeper inroads in the Indian market, Amazon announced that it will invest in local clothing chain Shopper’s Stop, giving the retailer a significant financial boost and allowing Amazon to use brick-and-mortar to set up experience centers in stores.
With it’s $28 million investment in the Shopper’s Stop brand, the Indian retailer will be able to open around 20 stores in the next four years, increasing its physical footprint by about 25 percent. Amazon, in exchange, will receive a 5 percent stake in the company, and it will set up Amazon Experience Centers at Shopper’s Stop stores, which it will use to allow visitors to test out product and try on clothing—all of which will more than likely be Amazon brands.
To date, according to Bloomberg, Amazon has poured roughly $5 billion towards its expansion into India as it aims to compete against local ecommerce rivals like Flipkart. For its part, Flipkart has done a valiant job besting Amazon in the region to date. Whereas businesses elsewhere follow Amazon’s lead in making moves in a specific market, Amazon appears to be playing catch-up in India. Earlier this year, Flipkart acquired fashion retailer Myntra and launched offline stores for its own apparel label.