Jeff Bezos, the world's richest man, is locked in a bitter battle for the top spot in the Indian e-commerce market. India's rich man is rumbling and ready to back his company's bid for a bigger share of the world market. But he is willing to support his business model and is rumbling around with the help of a $1.5 billion investment from the US government.
The Indian Association of Online Sellers, which represents 3,500 online sellers, has accused Amazon and Flipkart of exploiting their dominant position in India's Competition Commission and in court to favor certain sellers.
India's government wants to streamline its e-commerce rules and make them more competitive, while Reliance is getting ready to move forward. Just days before Bezo's arrival in India, India's competition authority, the Indian Competition Authority (ICA), announced that it had launched an investigation into whether Amazon or Flipkart had broken the rules.
In its first sales event, Flipkart overtook Amazon India, with unit sales of $15.5 million compared to the US e-commerce giant's $5.2 million. This would be a boon for the Walmart-owned e-commerce company, as India's e-commerce market is expected to be worth $65 billion by 2023, up from $29 billion in 2018. Bezos said India had exceeded expectations as it plunges toward a $1.4 billion market share in the world's second-largest economy.
In addition to Flipkart and Amazon, the Indian e-commerce market will be dominated in the coming years by a handful of companies that would be able to transform a large portion of the addressable customer base into an actual customer base. India is growing, and it is not just Amazon that needs to keep an eye on people.
Amazon, which has invested more than $6.5 billion in India, and Flipkart, which was acquired by Walmart in a $16 billion deal two years ago, are using local Kirana to expand their reach into rural India, betting that the transition to e-commerce will accelerate. Along with Amazon, Walmart, and now Reliance Jio, Facebook and Google are betting that India will be the next big market for their digital services.
The move is expected to encourage more Indian shoppers to shop online and bring Amazon more sales and loyal customers to expand its market share in the coming years. While Flipkart has lagged six years behind Amazon in Indian e-commerce, Amazon has risen to the challenge and is now hot on the heels of success in terms of market share. With the help of the unicorn flip-kart, now owned by Walmart, the company has managed to establish itself as one of the largest players in this segment of India.
Flipkart was founded in 2007 by two former Amazon employees and is tasked with maintaining its position as one of the largest e-commerce companies in the country. At the moment, Walmart, which won the bid for Flipkart and paid $16 billion for the takeover, is Amazon's toughest competitor in India.
The e-commerce giant has made a name for itself in this country, but Flip Kart is not the only company Walmart is partnering with. The Indian market, and how tight the retail market is, especially in a country like India, with a huge number of retail outlets and a lack of competition.
One of the obstacles to Amazon's path is its home-made Flipkart, which was founded in India in 2007 by Sachin Bansal and Binny Bansals, who worked for Amazon before starting their own e-commerce business. From humble beginnings, Amazon has grown into one of India's largest and most successful e-commerce companies.
It would not be surprising if Reliance bought more companies to strengthen its presence in e-commerce, making it one of India's most powerful companies on the market. The Indian e-commerce market is highly competitive, with US giant Amazon establishing its presence in India in 2013 and Chinese giant Alibaba planning to start selling in August this year. Both Amazon and Walmart see India as a promising market, with online retailing accounting for only a small fraction of their total retail sales in 2018.
Flipkart has a stake in Future Retail, India's second-largest retail chain. Both Amazon and Flipkart's account for more than 90% of India's total retail sales, meaning they operate in India's e-commerce market, which is also one of the fastest growing online markets in the world, according to a recent report.
Amazon and Flipkart are trying to make e-commerce more accessible, which is crucial to India's launch. Both Google and Amazon are stepping up and focusing on the e-commerce frontier, which currently has the greatest potential.
Amazon and Flipkarts want to make online shopping more convenient not only for consumers but also for their customers, according to the report, if they want to win the war for online commerce in India.
India is a key growth market for the American e-commerce giant, and Amazon has already pumped around $5 billion into the market. While India's biggest rival Flipkart announced a billion dollars in funding, Amazon said it would invest in India to expand the business.
Walmart paid $16 billion to crack Flipkart, but Amazon reported that it invested $3.5 billion in its India business in the first quarter of 2016. Amazon plans to invest more than $5 billion to $5 billion in its India business over the next five years, with the goal of investing $10 billion by 2020, according to the report.
0 Comments
Please do not enter any spam link into the comment box.