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Shoppers Stop looks to tweak its e-commerce strategy

Published
today Jan 10, 2019
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Indian fashion retailer Shoppers Stop is currently reviewing its e-commerce strategy and likely to tweak it due to the tightening of foreign direct investment (FDI) rules by the government.
 

Shoppers Stop looks to tweak its e-commerce strategy - Shoppers Stop


Shoppers Stop sells its products through its own e-commerce portal and also has a micro site on Amazon as part of its exclusive partnership with the global e-commerce giant.
 
The company is waiting for clarity on the FDI rules post which it will consult with its partner Amazon to discuss the way forward, CNBCTV18 reported citing anonymous sources.

“We are evaluating our omni-channel strategy both in terms of our own e-commerce platform and the micro site we have in Amazon. This includes how we can grow our presence and what will happen to our partnership with Amazon. We are still waiting for more clarity on the FDI rules and also for communication from Amazon,” said a source close to the company.
 
Amazon had picked up a 5 percent stake in Shoppers Stop for Rs 180 crore (approx $28.4 million) in September 2017. Shoppers Stop currently sells exclusively online to Amazon’s nationwide customer base offering its private labels in fashion like Stop, Kashish, Haute Curry, and RS by Rocky Star.
 
Shoppers Stop was hoping for a steep rise in online sales through its partnership with Amazon and was expecting online to contribute 10 percent from the current 1.5 percent to the overall revenue in the coming years.
 
However, the new FDI norms coupled with a ban on exclusive deals have put the brakes on Shoppers Stop’s omni-channel expansion across India.

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