Amazon, the US based eCommerce powerhouse has gained massive scale and share in only 3 years at the expense of Flipkart, Snapdeal and other smaller Indian eCommerce companies. Over one year ago, Amazon’s share by gross market value (gmv) was 15% while Flipkart’s share was around 45%, but in the most recent July quarter, Amazons’s share has grown to ~32% while Flipkart’s has fallen to ~40%. Not just that, Amazon carries 65 million products to Flipkart’s 45 million. Amazon has a strategy for vendors to export and buyers to import products (which could be in violation of government rules) and Flipkart has none. Amazon’s CEO said that “Amazon India has surpassed our most ambitious planned milestones.” Of course, almost all eCommerce companies are losing money so access to financial is needed, Indian companies are cash starved. So it is scary if Indian companies would lose leadership, domination and overtime name recognition in this growing segment to foreign companies.
- 21 Oct 2016