Amazon leads in Indian e-commerce market
The Indian e-commerce market is at an inflection point, thanks in large part to the disruption of the telecom landscape, with dramatic reduction in data rates and rapid adoption of 4-G smartphones and feature phones. The most admired online retail sector is expected to grow at 30% a year to reach a gross merchandise value of $200bn by 2026. India is with 1.3 billion population and there is rapid growth of internet users, with 430 million people in India have access to the internet, which is a third of the South Asian country's population. It is the most promising market in the globe and no one want to miss the bus.
The key to Amazon’s strategy in India is its ability to think globally but act locally – leveraging its massive scale, logistics capabilities and balance sheet while creating customized local offerings developed ground-up for the Indian market. This “Glocal” strategy is in sharp contrast with other U.S. companies . Amazon entered the India space in 2013, it is the second big player in India currently worth of $16 billion, already deeply committed to the country, where it has pledged to deploy more than $5 billion to grow its business. In this short span of 5 years it has captured about 30% market share in the Indian ecommerce market, and is poised to grow that 23% annually until 2027. After picking 10 percent stake in Shopper Stop for 180 crore approx. last year, Amazon already kicked off investment in India’s $70 billion retail market. Now, Amazon is in talks with Future group to buy 10% stake in the company for an amount of $600 Million.
With picking 10 per cent stake in Shopper Stop for about 180 crore last year, Amazon already had begun investment in India’s $60 billion organized retail market. Recently, Amazon is on the advance foot step to acquire 42-49% in Aditya Birla Retail entity, More supermarket chain, Amazon is joining hands with India-focused private equity firm Samara Capital for a complete buyout of More from the Aditya Birla Group for ₹ 4,200-4,400 crore. India's retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country, that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country. Amazon’s team spoke only of the value that they are creating for consumers and sellers. It seems ,a lots of hard work done to offer Go-local strategy is concerned.
Lastly, technology plays crucial role in defining the business criticality, there is no doubt on Amazon is pioneered in understanding the power of AI and technology disruption, with the help of Amazon Web Services (AWS), a subsidiary of Amazon.com, started on the mission long back to prepare an industry-ready workforce and nurture start-ups in the country to nurture talent in India.
The company is working very closely with the entire accelerator and incubator space in India. “AWS has various programmes that it runs in India that help all the stakeholders further drive invested or incubated companies move forward on New-Age technologies.Amazon Web Services (AWS) is a comprehensive, evolving cloud computing platform provided by Amazon. It provides a mix of infrastructure as a service (IaaS), platform as a service (PaaS) and packaged software as a service (SaaS) offerings.
The fact is India is an open market and opportunity is available for everyone to explore with their innovative marketing strategies.