{"id":5920,"date":"2017-10-09T09:17:00","date_gmt":"2017-10-09T09:17:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=5920"},"modified":"2022-11-15T09:25:29","modified_gmt":"2022-11-15T09:25:29","slug":"big-retailers-like-itc-nestle-coca-cola-cry-foul-over-amazons-ambush","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/big-retailers-like-itc-nestle-coca-cola-cry-foul-over-amazons-ambush\/","title":{"rendered":"Big Retailers like ITC, Nestle &#038; Coca-Cola cry foul over Amazon\u2019s \u2018ambush\u2019"},"content":{"rendered":"\n<p>Written By Ratna Bhushan &amp; Chaitali Chakravarty, ET Bureau<\/p>\n\n<div class=\"row\"><div class=\"col-sm-3\">\n<img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/11\/jpg-2-1.jpg\" class=\"img-fluid lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\">\n<\/div>\n<div class=\"col-sm-9\">\n<p>NEW DELHI: Top Indian retailers are furious at <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/amazon\" target=\"_blank\" rel=\"noopener\">Amazon<\/a> over what they see as <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" target=\"_blank\" href=\"\/definition\/ambush-marketing\" rel=\"noopener\">ambush marketing<\/a> \u2014 inside their own stores no less. Amazon has said the exercise was part of normal promotional activities.\n    <br> \n    <br> The India arm of the American online giant bundled its gift coupons with products of <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" target=\"_blank\" href=\"\/itc-ltd\/stocks\/companyid-13554.cms\" rel=\"noopener\">ITC<\/a>, <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" target=\"_blank\" href=\"\/nestle-india-ltd\/stocks\/companyid-13330.cms\" rel=\"noopener\">Nestle<\/a> and Coca-Cola being sold on the shelves of large organised retail chains such as <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/big-bazaar\" target=\"_blank\" rel=\"noopener\">Big Bazaar<\/a>, <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/hyper-city\" target=\"_blank\" rel=\"noopener\">Hyper-City<\/a>, <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/star-bazaar\" target=\"_blank\" rel=\"noopener\">Star Bazaar<\/a>, <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/d-mart\" target=\"_blank\" rel=\"noopener\">D-Mart<\/a>, Walmart-owned Best Price Modern Wholesale, Big-Basket and others. Not anymore it seems \u2014 the brick-and-mortar retailers are removing the items as they see this as a move by Amazon to acquire their customers.<\/p>\n<\/div><\/div>\n\n<p> \u201cWe will not allow ambush marketing at any cost,\u201d said <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" target=\"_blank\" href=\"\/panache\/panache-people-101\/kishore-biyani\/profileshow\/81245214.cms\" rel=\"noopener\">Kishore Biyani<\/a>, founder of Future Group, the country\u2019s largest brick-and-mortar retail network. \u201cWe have started removing such products from the shelves and told brands not to supply us packs that have any promotional tie-up with a rival retailer.\u201d\n    \n         \n    <br> Packs of brands such as ITC\u2019s <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/yippee-noodles\" target=\"_blank\" rel=\"noopener\">Yippee Noodles<\/a>, Nestle\u2019s KitKat chocolate and Coca-Cola\u2019s Sprite and Fanta soft drinks are among the brands that are, or were, being retailed at offline stores along with Amazon gift coupons. D-Mart chief executive Neville Noronha described the move as being \u201cbelow the belt.\u201d He added: \u201cPrincipally, the brands should have spoken to us. Amazon is using us as a channel to acquire customers without any agreement with us. We\u2019ve communicated our point of view to the brands.\u201d\n    <br> \n    <br> Amazon founder <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" target=\"_blank\" href=\"\/panache\/panache-people-101\/jeff-bezos\/profileshow\/79278871.cms\" rel=\"noopener\">Jeff Bezos<\/a> has pledged to pump $5 billion into India and has said it will continue to invest and grow in the country. It\u2019s now focused on selling food and grocery online with deals and promotions and has earmarked $500 million for this after the government allowed foreign direct investment in the retailing of such items, provided they are made and packaged in India.\n    <br> \n    <br> The marketplace said the exercise was part of its promotion. \u201cAmazon regularly runs various kinds of promotional activities with sellers and brand partners in keeping with its vision to make online commerce a part of everyday life,\u201d a company spokesperson said in an email.\n    <br> \n    <br> \n    <strong>FMCG Cos Neutral<\/strong>\n    <br> The consumer goods companies adopted a neutral tone. Nestle said: \u201cWe value our relationship with all our trade partners and collaborate with them for our promotions. In the recent KitKat promotion, there are some operational issues and we are in touch with our partners.\u201d\n    <br> \n    <br> A spokesperson for ITC, which makes a host of packaged foods and grocery products including biscuits, noodles, frozen foods, soaps and deodorants, said: \u201cLike every FMCG (fast-moving consumer goods) company, we run different consumer promotion schemes across multiple products from time to time to benefit consumers and promote the sale of our offerings. Currently, there are 38 promotion schemes across multiple products.\u201d There was no response from Coca-Cola.\n    <br> \n    <br> Rakesh Biyani, joint managing director of <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" target=\"_blank\" href=\"\/future-retail-ltd\/stocks\/companyid-45395.cms\" rel=\"noopener\">Future Retail<\/a>, said it was disappointing that large companies like Amazon were directly incentivising consumers with currency\/money, which is equivalent to indirect participation in pricing. He said such marketplaces aren\u2019t allowed to do this. \u201cThe act of promoting a specific distribution channel through a cash incentive on products sold through traditional distribution is not good for the growth of the industry,\u201d he said. \u201cSmall traders and retailers will be significantly impacted from a promotion, which is incentivising consumers to shop in a competing channel.\u201d\n    <br> \n    <br> Analysts said the episode reflected the intense competition.\n    <br> \n    <br> \n    <strong>Not a new practice<\/strong>\n    <br> Globally, companies have long engaged in cross-channel promotions and ambush marketing, consulting firm Third Eyesight chief executive Devangshu Dutta said. Such practices may not be unethical unless specified in the contract.\n    <br> \n    <br> \u201cHaving said that, offline retailers are fully within their rights to return the packs they take objection to,\u201d he said. \u201cFinally, smaller retailers which contribute the much bigger segment of sales may not be able to take a stand which the bigger, organised ones are taking.\u201d\n    <br> \n    <br> This is not the first time Amazon and brick-and-mortar retailers have been engaged in a bitter battle over discounting and pricing strategies.\n    <br> \n    <br> Large <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/e-commerce\" target=\"_blank\" rel=\"noopener\">e-commerce<\/a> players, which are known to burn cash to acquire customers, have been frequently alleged to indulge in predatory pricing by offline retailers. In the middle of last year, the government had issued guidelines on marketplaces aimed at putting an end to deep discounts offered by online platforms, a move that brick-and-mortar retailers said levelled the playing field.\n    <br> \n    <br> While online penetration of food and grocery penetration is still less than 1%, <a data-ga-onclick=\"Inarticle articleshow link click#Industry#href\" href=\"\/topic\/morgan-stanley\" target=\"_blank\" rel=\"noopener\">Morgan Stanley<\/a> expects this to become the fastest-growing online category, expanding at a compounded annual growth rate of 141% by 2020 and contributing $15 billion, or12.5%, of overall retail sales. <\/p>\n    \n\n<\/p><p>Source: <a href=\"https:\/\/economictimes.indiatimes.com\/industry\/services\/retail\/big-retailers-like-itc-nestle-coca-cola-cry-foul-over-amazons-ambush\/articleshow\/60998564.cms\" target=\"_blank\" rel=\"noopener\">economictimes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Written By Ratna Bhushan &amp; Chaitali Chakravarty, ET Bureau NEW DELHI: Top Indian retailers are furious at Amazon over what they see as ambush marketing \u2014 inside their own stores no less. Amazon has said the exercise was part of normal promotional activities. The India arm of the American online giant bundled its gift coupons [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-5920","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Big Retailers like ITC, Nestle &amp; Coca-Cola cry foul over Amazon\u2019s \u2018ambush\u2019 - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/big-retailers-like-itc-nestle-coca-cola-cry-foul-over-amazons-ambush\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big Retailers like ITC, Nestle &amp; Coca-Cola cry foul over Amazon\u2019s \u2018ambush\u2019 - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Written By Ratna Bhushan &amp; Chaitali Chakravarty, ET Bureau NEW DELHI: Top Indian retailers are furious at Amazon over what they see as ambush marketing \u2014 inside their own stores no less. 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