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Amazon Pushes into Indian Market with Free Shipping from Abroad

Amazon’s UK division has announced that it’s offering free Super Saver delivery to India.

It’s possible to order and get some items delivered from eCommerce sites abroad to India. But the shipping costs play a major spoilsport. At times, the shipping charges might be 100% higher than the price of the product itself. That’s what makes Amazon’s announcement extremely exciting.

Foreign Direct Investment is not permitted in multi brand retail chains in India. That’s the reason Walmart and other major retailers from across the globe tie up with Indian companies to set up cash and carry outlets instead. Under the current laws, Amazon will also fall under the same category.

While the sales records of Indian eCommerce are not bringing down the roof, the segment is growing from strength to strength. In the past of couple of years, people have started shedding their apprehensions over using credit cards online. The debit card and Internet banking gateways have brought even those without credit cards (they make a huge chunk of customers) into the fold.

Every eCommerce site worth its salt has gotten venture capital and at times the prices are lower than the local shops. People are just throwing themselves at sites that offer free shipping.

If there is a right time to enter the Indian eCommerce market, it is right now. That might be the reason Amazon is promoting this offer to test the waters. There are two interesting things to note.

First one is the minimum amount of purchase. 25 Pounds is roughly equivalent to Rs. 1800, which for most of the middle class and the young crowd (the target group) with disposable income is next to nothing. So, Amazon is counting on people to atleast give the offer a go once, more like an impulse purchase. And am pretty sure they will. Actually I am going to order some CDs for myself this weekend.

Secondly, the terms of service says, at the end of the offer period Amazon reserves the right to extend, amend or withdraw this offer. The decision might be based on how fabulous the response is.

From the regulatory perspective, how far along Amazon can get away with this offer is a bit unclear. Indian Government allowed PayPal to operate in the eWallet space for years before the axe came down. Let us wait and watch.

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Procter & Gamble has sold its Pringles crisp brand to Diamond Foods for $2.35bn

Diamond Foods, the US food manufacturer, also owns the Kettle chips brand, Diamond of California and Emerald nuts brands and microwave popcorn brand Pop Secret.

The acquisition will triple Diamond’s existing business and create a snack-food company with revenue of approximately $2.4bn and estimated earnings of $410m, according to the companies

KFC drops 'Finger Lickin' Good' in health-focused revamp

Kentucky Fried Chicken is to replace its 50-year-old 'Finger Lickin' Good' slogan with 'So Good', as it introduces a healthier focus, which will include displaying calories alongside prices on menus.

KFC: 50-year-old slogan goes in health-focused revamp

There will be new menu offerings, including the full rollout of its first griddled chicken product, called the Brazer, which will feature a burger, a tortilla-style wrap and a salad containing fewer calories, salt and fat than KFC's standard offerings.

The chain's 800 stores will also switch from using rapeseed, sunflower and palm oil, to just rapeseed, reducing saturated fats across the KFC range by 25%.

The new slogan will appear in ads set to run in two months' time. 'Finger Lickin' Good' has been retired before now, with a nine-year absence before getting restored in 2008.

KFC's pledge to display calories on menu boards from September comes as the Department of Health continues negotiations with food retailers to display more nutrition information.

Executives from fast-food chains, including McDonald's and Pizza Hut, and supermarket Tesco, as well as food producer PepsiCo, are members of the DoH's Food Network, which is currently working to agree initial pledges, which will form part of the Public Health Responsibility Deal.

Martin Shuker, managing director of KFC UK and Ireland, said: "We're excited to be launching So Good, because it's much more than just a new slogan. It's about becoming better at everything we do, including our great tasting food, the work we do with our people, and the way we operate in the local community."