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Amazon’s leading seller Cloudtail’s fashion and apparel business will be taken over by Cocoblu Retail in 2022

Amazon’s leading seller Cloudtail’s fashion and apparel business will be taken over by Cocoblu Retail in 2022.

Cocoblu Retail will take over Amazon’s largest seller, Cloudtail’s fashion, apparel, and accessories division, which will shut down approximately in a month, according to four industry executives.

Amazon will not own any shares in Cocoblu Retail, just as it has avoided Dawntech Electronics, which has been taking over Cloudtail’s electronics division since November. Salarpuria-Sattva Group, South’s foremost real estate corporation, owns Dawntech.

Cocoblu is a subsidiary of RattanIndia, is in the Other Miscellaneous Store Retailers industry, and is based in Delhi, India. Rattan India is the result of the Indiabulls split in 2014 when the energy component was renamed as RattanIndia. The National Stock Exchange and the Bombay Stock Exchange both list the company. Brickwork Ratings assigned a grade to the Bank Loan Facilities in October 2020, totalling Rs.7617.99 crores. RattanIndia is a firm based in India that works in the energy sector. The company uses coal from South Coalfields Limited and Mahanadi Coalfields Limited to supply power to Maharashtra. 

Rattan India has two thermal power plants: the first is the Nashik plant, which is expected to be decommissioned in 2020 due to a lack of long-term purchase agreements and land acquisition problems. The other power plant, which was completed in 2015, is located in Amravati. In 2019, Goldman Sachs Varde Partners took over the Rs 4050 crores debt-ridden Amravati power facility in exchange for a 15% stake. 

The company was also in the solar energy sector, but in September 2020, that component was sold to GIP for Rs 1067 crore, and the company departed the solar business. It is a wholly-owned subsidiary of Delhi-based RattanIndia Enterprises, which received a Rs 350 crore financial infusion from the promoters in January. It is a newly-floated e-commerce seller founded last October. RattanIndia Enterprises is the RattanIndia Group’s leading company for new-age enterprises like electric motorcycles, drones, and fintech.

About Amazon

Cocoblu Retail to take over fashion, apparel business of Amazon's largest  seller Cloudtail - The Economic Times

On July 5, 1994, Jeff Bezos launched Amazon. It is a multinational technological corporation based in the United States specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence. It has been dubbed “one of the world’s most powerful economic and cultural forces” and is one of the world’s most valuable brands. Along with Alphabet, Microsoft, Apple, and Meta, it is one of the Big Five American information technology corporations. 

Toys R US signed a 10-year deal with Amazon in 2000, worth $50 million per year plus a percentage of sales, under which Toys R Us would be the sole service supplier of toys and baby products and the chain’s website would redirect to Amazon’s Toys & Games category. Toys R sued Amazon in 2004, alleging that Amazon had deliberately permitted third-party sellers to sell items on the service in categories where Toys R Us had been awarded particularity due to a perceived lack of diversity in Toys “R” Us merchandise. In 2006, a judge decided in Toys R US’s favour, allowing it to terminate its arrangement with Amazon and launch its own e-commerce site.

Amazon and Borders Group signed a similar agreement in 2001, under which Amazon will administer Borders.com as a co-branded business. Borders withdrew from the agreement in 2007, announcing plans to open its own internet store. Amazon.com and DC Books announced a collaboration on October 18, 2011, for the exclusive digital rights to a number of popular comics, including Superman, Batman, Green Lantern, The Sandman, and Watchmen. 

As a result of the arrangement, well-known bookshops like Barnes & Noble have removed certain items from their shelves. Amazon established a cooperation with the US Postal Service in November 2013 to begin delivering orders on Sundays. The service included in Amazon’s standard shipping costs began in the Los Angeles and New York metropolitan areas due to high volume and inability to deliver on time and with plans to extend to Dallas, Houston, New Orleans, and Phoenix by 2014. Nike agreed to sell products through Amazon in June 2017 in exchange for stronger counterfeit goods monitoring. Nike withdrew from the deal in November 2019 after this failed.

 Around the same time, companies like Ikea and Birkenstock ceased selling on Amazon, citing similar concerns about business methods and counterfeit items. In September 2017, Amazon formed a joint venture with one of its vendors, Patni Group’s JV Apparel Retail, which earned US$ 104.44 million (759 crores) in the fiscal year 2017–2018. Amazon Fresh sold a variety of Booths branded products for home delivery in some areas as of October 11, 2017. 

In November 2018, Amazon and Apple Inc. agreed to sell a limited number of products through the service and Apple Authorized Resellers. As a result of this arrangement, beginning January 4, 2019, only Apple Authorized Resellers will be able to sell Apple products on Amazon. Through innovation in technology and colossal size, Amazon has developed a reputation as a disruptor of well-established sectors. In terms of revenue and market share, it is the world’s largest Internet firm, online marketplace, cloud computing platform, AI assistant provider, and live-streaming service as of 2021. 

Outside the region of China, it eclipsed Walmart as the world’s largest retailer in 2021, thanks in large part to Amazon Prime, a monthly subscription service with over two hundred million subscribers globally and is the United States’ second-largest private employer. Through its Amazon Prime Video, Amazon Music, Twitch, and Audible subsidiaries, Amazon also distributes various downloadable and streaming materials.

Six companies that are owned by Amazon:

Zappos

 

Zappos.com Partners with Abercrombie & Fitch, Becomes the Brand's U.S.  E-commerce Partner

It is the world’s most popular footwear and apparel website. This term derives from the Spanish word Zapatos, which means “shoes.” This company was started in 1999 and flourished quickly, remaining independent until 2009, when it was purchased by Amazon. The company is known for its customer service, and in 2010, its CEO, Tony Hsieh, published Delivering Happiness, a best-selling book about his management approach. While Amazon does not provide sales data for Zappos, Forbes reported in 2015 that the company made over $2 billion in yearly revenue. Among Amazon’s many acquisitions, Zappos stands noteworthy since it was one of the company’s first substantial forays into a retail sector other than books.

Whole Foods Market

It is a well-known grocery store business that holds the distinction of being the only USDA-Certified Organic supermarket in the United States. Safer Way, the company, was started in 1978. Whole Foods was an independent company with a market cap of about $10 billion before it was acquired by Amazon. It was placed 176 on the Fortune 500 list in 2017. Amazon has since slashed pricing on major food goods and integrated its Prime service into the Whole Foods shopping experience

PillPack Inc. 

It was established in 2013 as an online pharmacy. In 2018, Amazon bought the company in an effort to grow into the online prescription sector. The company’s purchase of PillPack, aided by Amazon’s massive delivery network, allows it to supply prescription prescriptions overnight to places across the country. PillPack, like Amazon’s acquisitions of Whole Foods and Zappos, has kept its brand under Amazon’s bigger canopy of subsidiaries.

MGM Holdings Inc.

Metro-Goldwyn-Mayer, or MGM, is an entertainment business specializing in film and television programming production and distribution. Metro Pictures Corporations, Goldwyn Pictures, and Louis B. Mayer Productions merged in 1924 to establish MGM. Today, the corporation holds an extensive collection of high-end film and television programming, including two of cinema’s most successful franchises: James Bond and Rocky. Late in May, Amazon announced that it had reached an agreement to buy MGM for $8.5 billion. It would be Amazon’s second-largest acquisition after Whole Foods if authorized.

Twitch Interactive

It is a prominent live streaming video platform that debuted in 2011. Twitch had 55 million unique visitors in July 2014, right before Amazon bought it. This platform is particularly popular among video game fans, and it has helped Amazon expand into the video game and streaming sectors.

Kiva Systems 

It is now known as Amazon Robotics, was one of Amazon’s significant acquisitions when it was purchased in 2012. The company, which was founded in 2003 and was formerly independent, develops and manufactures robotic systems for a variety of applications. It stands out among Amazon’s previous deals. Kiva’s products have not been integrated into Amazon’s e-commerce platform, as it has done with earlier acquisitions. While the exact role of Kiva is unknown, its expertise in automated storage and retrieval systems could be invaluable to Amazon’s logistics operations, which include thousands of robots that assist with deliveries.

In August, Kishore Biyani’s Future group said that Amazon was buying a 49 per cent share in Future Coupons, which owns around 7.3 per cent of Future Retail through convertible warrants and owns Biyani’s Big Bazaar retail network. Future Retail operates over 1,500 stores in various formats, including 293 Big Bazaar locations. Amazon had already acquired a minority share in retail chain More.

Amazon Seller Services, the company’s online marketplace arm, has received a total investment of 3,400 crores, while Amazon Pay (India) has received 900 crores and Amazon Retail India has received 172.50 crores.

Cocoblu will be well-positioned to give value to important brand-owners and sellers in India’s ever-expanding e-commerce ecosystem, according to RattanIndia Enterprises Ltd (REL) Business Chairperson Anjali Rattan Nashier. RattanIndia Enterprises announced a Rs 350-crore investment in Cocoblu Retail Ltd, its e-commerce unit, on January 12 this year. Cocoblu will use this funding to develop its business, including creating tech-enabled access to consumers for select brand owners and sellers on the platforms of leading e-commerce sites in India. It has a presence in new-age sectors such as electric motorcycles, drone solutions, and fintech. 

REL wants to establish a strong e-commerce presence through its dedicated e-commerce subsidiary. Cocoblu plans to work with a number of big and small firms in India to help them get their products onto the country’s most popular online platforms, according to the company. Cocoblu is dedicated to helping local micro, small, and medium manufacturers grow their businesses and realize their full potential through digital channels, according to the company. REL stated that digital e-commerce is still a central pillar of growth for the company and that the initiative is crucial in its growth strategy.

RattanIndia Power CEO Aman Singh resigns, Vaibhav Agarwal appointed as new  MD | hrnxt.comREL has purchased a 100 per cent stake in Cocoblu Retail Limited, making it a wholly-owned subsidiary of REL. Because the target firm was recently incorporated and has yet to begin operations, shares were purchased at face value. The acquisition cost is Rs1,000,000 for 10,000 equity shares for Rs 10 per piece.

Cocoblu will collaborate with a number of big and small firms in India to bring them to the country’s most popular online platforms. Cocoblu is dedicated to helping local micro, small, and medium manufacturers scale up their businesses by assisting them in developing their brands and realizing their full potential through digital channels. This creates a fantastic potential for internet retail in India, free of the hassles and capital expenditures associated with physical retail.

Cocoblu aspires to be the country’s leading seller in a variety of categories on major online retail platforms. REL’s interest in India’s high-potential e-commerce business will be bolstered by its investment in Cocoblu. E-commerce sales in India are expected to increase significantly from Rs 2.8 trillion in 2021 to Rs 8.8 trillion in 2025. This will be emphasized by India’s rapidly growing internet user base, which is expected to reach 900 million by 2025.

Taking advantage of its massive population advantage, India has access to one of the world’s largest pools of Gen Z and Millennials. REL’s digital e-commerce remains a key pillar of growth, with strategic importance in its expansion plans. Cocoblu will use the funds to expand its company, including creating tech-enabled consumer access for chosen brand owners/sellers on the platforms of India’s largest e-commerce sites.

Brands and sellers will be able to get end-to-end solutions from the company, which will enable them to establish a highly efficient and rapidly scalable model. Cocoblu plans to work with up-and-coming brands/ventures by providing them with the correct positioning in a highly competitive market.

By 2025, India’s e-commerce business is predicted to have 300-350 million customers, with a Gross Merchandise Value of US$ 100-120 billion. With less than 5% e-commerce penetration, India has the world’s second-largest internet-enabled population and third-largest E-commerce consumer base, providing plenty of space for growth in the sector. The internet, increased prosperity, awareness, reach, and sheer convenience are all driving factors in India’s online retail boom. The latest pandemic has increased the country’s trend toward online shopping.

Opponents, including small merchants, have accused Amazon and Walmart-owned Flipkart of using front companies to get around India’s restrictions prohibiting foreign-owned marketplaces from selling their own products. According to company experts, the claims and the possibility of regulatory action are among the numerous reasons why Cloudtail is being wound up. Both markets have always stated that they adjust to the fundamentals. The Indian Competition Commission had earlier this month approved Amazon’s attempt to buy Infosys founder NR Narayana Murthy’s 76 per cent ownership in Cloudtail’s parent company, Prione Business Services, through his investment firm Catamaran Ventures.

Because large suppliers are limited to 25% of total sales, Amazon is bringing in multiple vendors to replace Cloudtail, according to the CEO of a multinational fashion firm that sells a variety of brands on Amazon. He explained, “Cocoblu would be about fashion and lifestyle.” Another CEO of a company that sells a variety of brands through Cloudtail said that starting in the second week of April, the company will transition to selling through Cocoblu.

Edited by Prakriti Arora

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