Amazon Ready to Combat Walmart with More Investment in India
The exemplary sale of FlipKart to Walmart has arouse its rival Amazon to get equipped to combat the heating competition in India eCommerce sector. In its recent move to retaliate, Amazon has some steaming plans to work in Indian market and re-establish its ruling position.
Amazon.com has increased its investment in India from $5billion to $7 billion. It is to be noted that this investment was merely $2 billion in the year 2016. Not only this, Amazon is also investing in acquiring Indian Bollywood videos to push into its Prime Videos product. This will give Amazon an overall coverage of Indian market, mood, and people.
Walmart, now boasts of being the No.1 player in Indian ecommerce domain and the vigorous step by Amazon is a hit on its long-standing cold war to grab the title of being Number 1. Walmart has also given large scale employment to people in its back-office operation, logistics, and warehousing filling the unemployment gap. Given strengthening hold of this company in India, Amazon also sensed the need to buck up for this cut-throat competition with required strategies. Amazon has also, recently employed more than 8000 people in its logistics department. It is also apparent that Amazon is selling groceries in India since last year and Walmart has not even started that.
Over the last five years or so, the growth of Indian Ecommerce was decelerated due to changing governmental policies like new FDI rules, GST, demonetization and others. Yet, India with its $27 billion eCommerce market, is still a safe bet for foreign investment and still is a ground to emerge, claim, and conquer.
Amazon has already strengthened its position in Indian market with metropolitans opting for hassle-free online shopping and safe home deliveries. The company is coming up with new offers and services that aims at closing the existing gaps with incumbents and establish it firmly in the Indian Market. Walmart has still to start its show in India which is awaited.