With Walmart’s imminent entry, Amazon may reset growth and profitability targets | Business Line

Pricing strategy

While Amazon entered the Food & Groceries category four years ago, which it is betting on to make it the daily, weekly, monthly shopping site of choice for Indians who spend a substantial portion of their monthly income on food, groceries and other consumables, it will have to tweak its pricing strategy to be able to match Walmart’s ‘Every Day Low Price’ (EDLP) a pricing strategy that allows Walmart to offer all customers a low price every day without doling out coupons, promotions or special discounts.

“Walmart has perfected its pricing strategy with EDLP, drastically reducing the resources required to create a never-ending cycle of promotions. It has a head-start over Amazon as it has established a presence in the India market for over a decade, pumping in billions of dollars in setting up its retail wholesale business, including a strong back-end with sourcing, procurement, logistics, merchandising, analytics and everything else required to run a large national distribution channel.

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With Walmart’s imminent entry, Amazon may reset growth and profitability targets – Business Line.