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Amazon Tough Way Ahead

India is the fastest growing market in the world & with having second largest population in the world the potential of market of India can easily be determined. E-commerce is something new to India but having around more than 20 crores mobile users & 11 crores Facebook & Internet users make India a country with potential to E-commerce market.
Brick-n-Mortar business model rooted to ancient ages in Indian market but Digital market is what young generation of India shifting to. With increase in technology & use of internet this is what is inescapable. Indian e-commerce market was of $14 billion dollars in 2012 & growing at the pace of 8-10% annually. It is estimated that Indian e-commerce market would be of $70 billion dollars by 2020.
There are several local players in India in which some turned into Giant like “Flipkart” who recently declare to invest more than $1 billion dollar in Indian ecommerce marketspace. Flipkart is a brand name in India who recently acquired another famous e-commerce chain related to food & groceries i.e. myntra.com.
Amazon is an e-commerce retail giant in the world & its entry may lead to different effects on Indian e-commerce market which may be negative or positive. With the entrance of big & new player, market may get even more competitive & as Flipkart don’t want to lose its loyal customer base to Amazon so with the implementation of new & faster service approach Flipkart is creating brand for itself which amazon has to counter. Along with that with the presence of more powerful competitors there are chances of entry barriers related to e-commerce market in broad categories as competition would be huge & new entrant may collapse because of lack of resources, though niche market would be an easy target for new e-commerce players. Amazon faces biggest threat from Flipkart only in India. Other players like jabong.com, zovi.com, tradus.com, snapdeal.com etc are as small to ignore in broader scenario.
One major thing to notice is that amazon is investing almost double amount of fund as compared to Flipkart in India i.e. $2 billion dollars, so we expect more technological implements along with use of different POS channels & delivery models. This might bring revolution in Indian e-commerce market as technology may be implemented in whole new way to gain more control over market share. The biggest challenge is both for Amazon & Flipkart. For Amazon they face the challenge of already established player who is having a better brand value & loyal customers towards its side in India while on the other hand Flipkart faces the challenge of world largest e-commerce retailer which is eager to expand in India & saving their market share from its counterpart at broader aspect (Amazon) & at narrow aspect (Snapdeal, Jabong etc) even from the local e-commerce competitors.
We have also heard that e-commerce giant Flipkart may use Indian-Post as their new delivery model in future which has the reach extend to farthest corners of India. So this may create more trouble for amazon, as first they have to establish their brand in Indian market & along with that they need to improvise their reach through implementation of new practices related to delivery model & safe payment methods especially cash-on-delivery which is highly popular in India & main reason of the success of Flipkart in India market as an e-commerce platform.
The path of Amazon in India won’t be easy one even being largest e-commerce retailer in the world. Only the good strategy & building of brand image of amazon to its root customer which may or not be from metro cities of India would lead amazon to at least survive in Indian market for long & would act as a cash-cow in long run.


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