Amazon, the mega-giant of e-commerce, is investing billions of money into the Indian market to win the 1.3 billion population. Amazon lost its position in China to Alibaba and JD.com and is now tapping the Indian market. Amazon believes that India’s population is extremely potent as more and more people are turning to online shopping.
The Chief of Amazon, Jeff Bezos, has drawn investment figures at nearly 5.5 billion dollars for the Indian market and the responsibility to spend the amount, has been given to Amit Agarwal. Amit is working towards tapping the Indian market in Amazon’s favour and working towards adjusting to market demands and conditions.
Amazon Making Dynamic Moves To Win the Indian Market
To make its impact on the Indian market, Amazon has launched a credit process especially for Indians that do not hold accounts in banks. It has also created a user-friendly mobile application to support low-cost phones, used by a large majority of the population living in smaller towns. Additionally, the e-commerce giant has also added some very ‘Indian’ products to its e-stores like traditional Indian curry pastes and age-old digestives.
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However, it’s not all a smooth sail! Even after making dynamic changes to adjust to the Indian market, the company faces tough competition from the likes of Flipkart. While tapping urban India is easier, it is seeping into smaller towns and populations that are not very tech savvy is what proves a challenge.
‘In India we are building everything from the bottom up’ –Amit Agarwal, Amazon India
As reported on Bloomberg, Amit Agarwal shares the challenges faced in the Indian market. He states that a major chunk of the investment has gone into building delivery stations and warehouses. The company has in fact incurred heave losses at an international level because of the high spending on logistics, especially in India.
The struggle for the e-commerce giant has also been to make the population understand that online shopping is not restricted to Urban India. The change over the years has been progressive. The company has also broken paths by building its own efficient delivery system. A lot of partnering work is also being done to educate more and more people about e-commerce and the benefits it brings.
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Challenges to Chances for Amazon
One of the major challenges for Amazon, in a country where the use of credit cards is limited, is payments. While there are multiple payment options available, it is still being streamlined. It also started its platform for digital lending, extending credit services for small sellers. In 2017, the company made a bold move, a first globally, by introducing the Amazon Pay digital wallet.
Will all these efforts and path-breaking measures help Amazon secure the Indian market?