Amazon to increase focus on kids' segment

India is proving to be rather expensive for Amazon. Throughout 2016, the Seattle-based e-commerce major launched multiple global programs in India, including its popular subscription-based service Prime, which is priced much cheaper here compared to the US market. In the previous quarter of 2016, Amazon had registered 541million dollars loss from its international business, which again was largely due to heavy spends in India.

And India continues to be a rather large investment for the retailer. But it’s bullish on India in the longer term. Amazon has been aggressively investing on discounts and promotions, building infrastructure, and new launches in India. It is also pushing its daily consumables and FMCG goods business Amazon Now and Pantry. Amazon has pumped in about Rs 7000 crores over the last year in its Indian entity, which runs the marketplace business here. It also added Rs 150 crores to its payments business late last year signaling its intent of a larger play in the payments market.

Right now Amazon India is not thinking of profits and will continue to pump in capital into the India market. The plan is to think long term both in terms of top line and bottom line. And in the fashion category, Amazon India is banking on the selection for toddlers and kids to lead significant growth. The subcategory, which focuses on footwear and apparel for 0 to 14 years, has signed up brand partnerships and exclusive online launches to increase traffic from existing shoppers on the site. And as Arun Sirdeshmukh, head, Amazon Fashion India says, young population is important, as their share of buyers in the mid-30 years bracket is high, who are also likely to be parents. The percentage of these people shopping with Amazon on other verticals is high and this is a natural extension. The company launched 30-plus brands over 2016 in the kids’ apparel and footwear category including names such as The Children’s Place, Puma kids, French Connection, Tommy Hilfiger, Biba and a curated character store which is associated with brands like Barbie, Disney and Spiderman. The marketplace has also started a footwear store for toddlers between zero and two years of age, citing ease of showcasing products for the age group.