The head of Future Group, one of India’s largest and most established retailers, admits he can’t keep up with web sites like Snapdeal and Flipkart when it comes to spending money to entice shoppers to buy online.
Private investors have poured USD2.3 billion into India’s e-commerce companies so far this year, according to consulting firm Technopak, giving them financial firepower to overwhelm shoppers with bargains and deals that brick-and-mortar retailers like Future Group, which runs a host of chains including Future Retail Ltd and Future Lifestyle Fashions, cannot match.
In an attempt to match up, traditional retailers are forging partnerships with well-funded websites such as Flipkart.com, Amazon.com Inc and Snapdeal to put their wares on the web without investing heavily in their own online infrastructure.
(Source: CNBC)