Leading retailers in India are angry at Amazon over what they view as trap marketing. Amazon has claimed that the exercise was a fraction of standard marketing activities.
The India arm of the U.S. online behemoth packed its gift coupons with goods of Nestle, ITC, and Coca-Cola being traded on the shelves of big organized retail chains such as Hyper-City, Big Bazaar, D-Mart, Star Bazaar, Big-Basket, Walmart-controlled Best Price Modern Wholesale, and others. The brick and mortar vendors are eliminating the goods as they view this as a decision by Amazon to obtain their users.
“We will not permit trap marketing at any price,” claimed founder of Future Group, Kishore Biyani, to the media in an interview. Future Group is the largest brick and mortar retail system of the country. “We have begun eliminating such goods from the shelves and informed brands not to cater us packs that have any promotional bond with an opponent retailer.”
Bundles of brands such as Nestle’s KitKat chocolate, ITC’s Yippee Noodles, and Coca-Cola’s Fanta and Sprite soft drinks are amongst the brands that were, or are, being sold at offline shops coupled with gift coupons of Amazon. Neville Noronha, the Chief executive of D-Mart, defined the decision as “below the belt.” He claimed, “Mainly, the brands must have talked with us. Amazon is utilizing us as a channel to obtain users without any contract with us. We have shoed our opinion to the companies.”
Jeff Bezos, the founder of Amazon, has committed to invest $5 Billion in India and has claimed that it will carry onto grow and invest in the nation. It is now aimed on selling grocery and food online with promotions and deals and has allocated $500 Million for this after the government permitted overseas direct spending in the retailing of such goods, provided they are packaged and made in India.
The platform claimed that the move was fraction of its marketing. “Amazon frequently runs different types of marketing activities with brand partners and sellers in keeping with its dream to make online trade a part of daily life,” a spokesperson of the company claimed in an email.