Amazon to Launch Offline Experience Centres in India with Shoppers Stop

Prayank

After making its mark as a prime e-commerce player in the Indian market, Amazon is looking to expand its presence in the offline retail world too. Jeff Bezos’ company has bought a 5 percent stake in Mumbai-based Shoppers Stop — investing a total of Rs 1.8 billion ($28 million).

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According to a Bloomberg Technology report, as part of the deal, Shoppers Stop will let Amazon setup experience centres across all the 80 of the company’s brick-and-mortar stores located in 38 cities in India.

While this collaboration will help Amazon make their presence felt in the offline market in India, Shoppers Stop could also benefit from it as they can tap into Amazon’s massive online presence.

Although Shoppers Stop has its own online presence, it doesn’t garner traction to anywhere near what Amazon does.

It’s a Win-Win for Both

The report also mentioned that as part of the deal, Shoppers Stop will get an exclusive store on Amazon India’s website where it will be allowed to display and retail its entire line of products.

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Amazon hasn’t fared very well in the neighboring Chinese e-commerce market where native players such as Alibaba have a stronghold on the market.

Moving forward in India, where it also faces tough competition from the likes of Flipkart, Amazon is looking to strengthen its position not only in the online but offline space too.

The investment will also help Shoppers Stop to open 20 brick-and-mortar stores to its fold. In addition to that, Amazon’s investment made the share price for the company surge by as much as 20 percent — their biggest stock price rise in the last eight years.

Amazon has been making news in India. Earlier this year they started massive sale for its Prime members in the country and recently repeated a deals festival to counter rival Flipkart’s Big Billion Day sales.

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Prayank

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Prayank

Bike enthusiast, traveller, ManUtd follower, army brat, word-smith; Delhi University, Asian College of Journalism, Cardiff University alumnus; a journalist breathing tech these days.