Amazon's Great Indian Festive sale is not even over yet, but the global ecommerce giant is already busy planning for the future and with good reason by the looks of things.
With India's huge potential largely remaining untapped, Amazon believes over the next few years that the country will emerge as its second largest market after the USA and will also become the online global marketplaces fastest nation to reach $10 billion in Gross Merchandise value (GMV).
"I can't project the year but in the next few years India will be the second-biggest market for us (after the US) — there is no doubt. It was the fastest billion-dollar GMV for us and I believe it will even end up to be the fastest to get to $10 billion," said Diego Piacentini, senior vice-president for international business, Amazon.
"We have been very active in increasing the amount of investments. Every time we look, the opportunity very much exceeds that — it is big. That number is dynamic and it is growing and we don't stick with one number. We have targets and the Indian team keeps beating the targets and we will never be constrained by budget. The budget will be dynamic and it will keep evolving," said Amazon's Diego Piacentini.
In February, a report released by the Boston Consulting group and the Retailers Association of India predicted the Indian ecommerce market to grow from $17 billion in 2014 to as much as $70 billion by 2019. Amazon plans to take on local players including Flipkart and Snapdeal to earn its share of the market.
"The biggest surprise is no doubt how fast our size in India has grown. I am an optimistic person but I never guessed that we will become this size in only just more than two years. I have never seen anything like this - not in the US, not in Europe, not in Japan and we are number one in the US, number one in Europe and number one in Japan... This is extraordinary." said Amazon's Diego Piacentini.
Amazon is already making giant strides behind the scenes to set up servers in India. It has been reported that high ranking officials from Amazon has met with Communications and IT Minister Ravi Shankar Prasad recently in New Delhi to discuss lucrative opportunities.
It is believed that Amazon plans to set up its cloud facility and also aims to shift its servers from Singapore to India. Issues such as implementation of GST and Bureau of Indian Standards clearance was also discussed.
Amazon has had a big week in India and it continues to plan in a big way. Flipkart, Snapdeal and even ecommerce global powerhouse Alibaba will be eagerly watching to see what is its next big step in the country.
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