The temptation of the Indian market has given Amazon, Wal-Mart and Alibaba a vision and hope.
Editor’s note: This article is from the WeChat public account “zinc scale” (ID: znkedu ), the author zinc scale special correspondent McCord, edit|Xu Wei, is authorized to publish.
1: The South Asian subcontinent in the rising e-commerce sector has also attracted the attention of e-commerce giants from the US, Europe and China.
2: Although the Big Three have made a lot of tricks in the Indian market, they can’t help the Indian government’s anti-monopoly giant’s decree.
3: Amazon saw the prospects and hopes of future competition with Wal-Mart and Alibaba on the second battlefield.
In recent years, India’s Internet penetration rate has increased year by year. In view of the successful model of the Chinese market, many investors and analysts are optimistic about India’s future performance. The current e-commerce market in India is $67 billion. There are predictions that by 2022, the market value of Indian e-commerce will exceed the 100 billion dollar mark.
Therefore, Amazon has set up the world’s largest office building in Hyderabad, India, and it has become very understandable to increase investment and attention to the Indian market.
Amazon Plus India
When the Indians are ready to cheer for the success of the moon landing, the “Lunar II” lander lost ground when it was only 2.1 kilometers from the moon. Indian Prime Minister Modi was forced to say that “in this brave moment, we will be brave again.”
Although some exaggeration, I have to admit that India is challenging the cutting-edge technology. The South Asian subcontinent, which is in the rising stage of e-commerce, has also attracted the attention of e-commerce giants from the United States, Europe and China. One of the most famous is Besos, who is divorced for a few days, and its Amazon.
In order to show concern, Amazon even built the world’s largest office building in Hyderabad, India. In this super new campus covering an area of 38,700 square meters and accommodating more than 15,000 employees, Amazon plans to turn India’s potential stock into its strongest weapon against the powerful challengers such as retail giants Wal-Mart and Alibaba.
India’s Internet penetration rate is increasing year by year, and Indian e-commerce performance is staggering. Industry insiders expect that the market value of Indian e-commerce market will be three years later.Will break through the $100 billion mark.
In this context, Wal-Mart bought a 77% stake in Flipkart, the number one Indian e-commerce company, for $16 billion last year, which is to give Amazon a look. After entering the Indian market for five years, Wal-Mart has been waiting for an opportunity. And winning the e-commerce giant Flipkart is bound to cause a lot of pressure on Amazon.
It is reported that Flipkart will carry out the “Big Billion” festival promotion from September 29th to October 2nd. At the same time, Flipkart also announced that it will launch a free video streaming service during Diwali.
Flipkart, the number one e-commerce company in India
Seeing that competitors are catching up, Bezos feels anxious. However, the house leaks all night. The Indian government’s regulation of e-commerce is very strict. It also has a special e-commerce law that explicitly prohibits foreign companies from selling their own products. This caused Amazon’s Kindle and Echo to encounter legal risks in sales.
Bezos was forced to take two-pronged approach: On the one hand, he has invested billions of dollars in a row to expand Amazon’s store in India, hoping to teach Indians to order with their mobile phones. To enhance the user experience; on the other hand, Amazon acquired a number of Indian supermarket chains and obtained sales channels for physical retail stores, hoping to avoid legal risks.
Even, Amazon will officially open its catering business in October, with a 5%-6% commission that is only a quarter or less of the competitors Swiggy and Zomato. The rhythm of Bezos is clear, first in Bangalore, Silicon Valley, India, then Mumbai and Delhi. A restaurant signed a contract and assembled together to complete a large-scale operation.
In addition, Amazon is still negotiating with India’s online car giant Ola, plans to acquire its takeaway service Foodpanda and UberEats. Once achieved, Amazon will use its Prime Now service platform to integrate catering and takeaway into a system network.
The battle of the aliens of the Big Three
Of course, while attacking the city, Amazon may also have to grasp the rhythm of the Indian market. After all, on the fast-growing e-commerce platform, the promotion of products and services is also changing, especially as online consumer demand is changing with each passing day.It is necessary to conduct research and judgment in conjunction with the actual situation in India.
In the Channelplay Limited survey, Flipkart, Amazon, Snapdeal, Paytm Mall (both of which have Ali investment) and ShopClues on the platform that account for 80% of the e-commerce market, the independent sellers interviewed for the neutrality of the platform role A lot of constructive opinions were put forward on the sex, the lethality of the associated sellers, the binding of the interests of the private brands, the equality of online and offline channels, and the prevention of the spread of counterfeit goods.
If Bezos and his team can upgrade the seller ecosystem, there will be an additional win in addition to the paper strength.
Review of Amazon, Q2 merchandise sales revenue of 35.86 billion US dollars, accounting for 49% of the total income structure, an increase of 12.5%. The growth rate of performance has fallen a lot, and the core business is not always smooth in the main market. Therefore, the Indian market may be a key opportunity for Amazon to achieve a go-ahead. Just in the face of the challenges of Wal-Mart and Ali, Bezos does not seem to have an absolute winner.
In terms of first-mover advantage, Alibaba, which began to deploy and invest 10 years ago, continues to support the Indian domestic market, including payment company Paytm and its e-commerce subsidiary Paytm Mall, food distribution startup Zomato, online grocers BigBasket, online retailer Snapdeal and logistics company Xpressbees.
Among them, Alibaba’s Snapdeal has changed from the industry to the third because of Amazon’s participation in the war. To this end, Alibaba chose to invest in the paytm mall emulating Tmall B2C to try to pull back a city, but the results are not obvious.
In contrast, Amazon’s cumulative investment in the Indian market reached more than $6 billion. In terms of acquisitions, Bezos won a 49% stake in Future Lucky, India’s second-largest retail chain.
After that, Amazon Fresh was launched in places like Bangalore. A bit like the domestic daily fresh, box horse fresh. Amazon Fresh offers 5,000 items including fresh fruit, vegetables and meat and daily necessities.
In addition, Amazon also pushed the Prime Now service into the take-out area. In terms of distribution services, Amazon launched a delivery station with an area of over 1858 square meters in Telangana. In Hyderabad, there are three distribution centers with more than 90,000 cubic meters of storage space and two sorting centers with a processing capacity of 9,290 square meters.
It’s also because of a wave of combination punches that Amazon has increased its share of the e-commerce market in India.