E-commerce giant Flipkart on Tuesday said it is setting up a new local entity - Flipkart Farmermart - that will focus on food retail in India, as it looks to take on arch-rival Amazon in the segment.
This newly registered local entity ‘Flipkart Farmermart’ will focus on food retail and is an important part of the company’s efforts to boost Indian agriculture as well as food processing industry in the country, he added. “We’ve secured all internal approvals for the same already. We’re looking forward to invest more deeply in local agri ecosystem, supply chain and working with lakhs of small farmers, Farmer Producers Organisations (FPOs), food processing industry in India, helping multiply farmers’ income and bring affordable, quality food for millions of customers across the country,” Krishnamurthy said.
The company did not comment on the investments planned for the new venture. Interestingly, Amazon had received the government’s nod for its $500 million investment proposal for retailing of food products in India in 2017. The American retailer - through Amazon Retail India - now procures and sells grocery items like packaged foods, cooking and other items.
Grocery segment accounts for a significant portion of the unorganised retail segment in the country. Estimates suggest the market to be worth about $200 billion in India. Over the last few years, players like BigBasket and Grofers have expanded their presence in the online grocery segment in the country as people became comfortable buying even milk and bread online. Flipkart and Amazon are also betting heavily on the online grocery segment that is projected to witness a strong growth over the next few years in India.
According to a report by Franchise India, the online grocery market is expected to be Rs2.7 billion market by 2018-19. One of the sources privy to the development said, Flipkart - through Flipkart Farmermart is looking at operating a full-fledged food retail business that will operate in the online space.
Flipkart will also look at cashing in on Walmart’s expertise in the food retail segment that accounts for a major chunk of the American firm.
E-tailer launches ‘video originals’
Meanwhile, Flipkart, announced its foray into offering original video content with the launch of ‘Flipkart Video Originals’(FVO). Integrated within the Flipkart Video platform, which was launched in August this year, Flipkart Video Originals will be produced and curated especially for the Flipkart platform. The first creator to join the platform is Academy awardee Guneet Monga. Guneet is on board as the official creator and curator of short stories for the platform, helping bring to life new-age storytelling for millions of people. FVO will make available bespoke snackable content that is both mobile-first and interactive in nature.