Coming soon, big food fight between amazon & walmart

1. Coming Soon: Big Food
Fight Between Amazon
& Walmart
Post FDI policy, Amazon may start food etail;
Walmart already keen

2. Contd…
Amazon and Walmart, American super sellers, may start an Indian version of their US
battle in the wake of the new FDI policy . With the Centre allowing ecommerce in food
products (provided they are sourced processed here) Amazon and Walmart are both keen
to explore the business, and if they both open online stores, intense competition is
certain.Both Amazon and Walmart can create new models if they sell food products in
India.Amazon's current model is marketplace, which hosts thirdparty sellers. Walmart
operates cash-and-carry stores that sell to retailers and traders.
In a food fight between these American giants in India, both will sell directly to consumers,
since the new policy allows 100% FDI in food retailing, both offline and online.
“Amazon is interested in sourcing and selling grocery , fruit and vegetables online through
its marketplace. In this case, Amazon itself can act as a seller and need not rely on third
parties. It works with farmers in the US under a programme called Amazon Fresh and
would like to replicate the model in In dia,“ said a per son familiar with Amazon's plan,
asking not to be na med.

3. Contd…
At present, online compamulti-brands are nies that sell multi-brands are not
allowed to sell directly to consumers. They are, however, allowed to own a
marketplace, a platform where third-party sellers list their products and sell to
buyers directly . According to the person quoted earlier, Amazon's only fear is if the
food ecommerce foreign direct investment policy were to mirror the single-brand
retail policy -only those with offline presence are allowed to sell online. Amazon
has no issues with complying with any requirement on creating backend
infrastructure, this person said.
Amazon, another person familiar with the company's thinking said, reckons etailing
food items will save on costs because there will be fewer intermediaries.
Warehousing and logistics operations can handle distribution of food products.
Amazon thinks this will offer higher margins to producers and better prices for
consumers.
Walmart has already said it will be interested in selling food products directly to
Indian consumers thro ugh brick-and-mortar and online stores.

4. Contd…
“The business of brick-and-mortar food retail stores and online sale of food
products is of interest to us, but we have to evaluate the policy guidelines
once they are notified,“ Walmart India Chief Executive Krish Iyer had told ET
in an interview in April.
Walmart India spokesperson Rajneesh Kumar described Monday's FDI policy
as “very progressive“, adding, “we will study the policy document when
government finalises and issues it“.
An Amazon India spokesperson too welcomed the development.
“We welcome the move to permit 100% FDI in trading, including
ecommerce, of food products manufactured or produced in India. We
believe this will positively impact the food and food processing industry to
reach a wider customer base with ease,“ he said.

5. For Details and Appointment contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-
110015