Indian ecommerce market has been garnering a great deal of attention from the international quarters be it investors or global ecommerce companies like Amazon, Alibaba, Walmart etc. Global leaders are pouring crores of rupees, drawing expansion plans and are forming strategic partnerships left, right and centre.
Take a look at what Amazon and Walmart’s next move is to penetrate further in the Indian ecommerce industry.
For the 20 year old Amazon, outside US, India is its largest battleground. And they are leaving no stone unturned to race ahead of national players like Snapdeal & Flipkart and international ones such as Alibaba. Yet again the company is ready with bag full of money and is going to invest $5-billion in the Indian market.
The money will be utilised to strengthen their operations by setting up more warehouses and data centres across the country. Amazon also plans to launch ‘Amazon Prime’, a premium subscription service that allows live streaming of music & videos besides providing various shopping advantages.
A source close to Amazon said, “Our biggest financial backer (Amazon founder Jeff Bezos) doesn’t need a fresh pitch while deciding every new investment we are really long on India, investment figures are easily in multiples of billion dollars.”
The American multinational retail chain, Walmart is already present in the Indian B2B ecommerce segment. Now they wish to expand in the B2C market by selling its fashion apparel brand ‘George’ and other home items through third-party ecommerce sites.
An unnamed official shared, “Walmart is in a very early stage of exploring the market for George/ George is Walmart’s largest private label and is a more than $2 billion brand.”
Out of all, i.e. Amazon, Walmart and national players, Amazon has the upper hand in the global ecommerce market. Walmart’s online sales in very tiny when compared to Amazon. In 2014, WalMart’s online sales were $12.2 billion, whereas Amazon’s a whopping $89 billion! Plus the world’s largest online retailer has been around in India for 2 years giving them first mover advantage over Walmart.
And as far as Indian players like Flipkart and Snapdeal are concerned, they still have to rely on multiple foreign investors in every round of funding. Not to forget they are burning cash too. On the other hand Amazon has no dearth of funds and hence is strong financially.
Who do you think will win? Please share.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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