eCommerce sector heats up in India with $3bn committed between Amazon & Flipkart

For a couple of years I thought that Flipkart is set out to be acquired by Amazon one day. Pleasantly surprised by the fact that Sachin & Binny Bansal’s Flipkart is one Indian company that is being compared to one of the largest global players as a tough competitor in the local market. I use the word tough because it is seldom that you find the founder of a large company such as Amazon issuing a statement / press release as a response to local company’s investment announcement.

With $3bn lined up, between the two largest eCommerce players, committed for India,  I am keenly watching the e-commerce space to what happens next. I personally think there is enough space for a couple of players to co-exist in India, in the domain of e-commerce. A few large ones like Amazon, Flipkart, Ebay and maybe a couple of others will definitely play a large role in crafting the future of E-Commerce in India, while companies like Jabong and a few others may be a part of the M&A activity that might happen in some time.

Here is a comparison between Amazon and Flipkart that comes to my mind based on what I have been reading on the web and in business news:

The future of E-Commerce in India definitely appears to be hot again. I had been hearing from a few industry leaders that some of the large venture capitalists were having a tough time understanding whether or not their investments were wise in this space. My guess is that they would be smiling now and hoping that their investments will be valuable with the consolidation expected. Myntra for example has been a good strategic buy for Flipkart strengthening its apparel category, which is a high margin category for eCommerce players in India.

Another thing to watch out for is what will this money be spent on. Of course it is a no brainer that both the companies will spend on strengthening their sellers base, marketing and team building, but I also see a lot of innovation in building warehouses at strategic locations and developing scalable delivery models. One area in which I think Amazon will have a positive rub off  effect on the other players is customer care.

All said, it will be interesting to watch the eCommerce domain in India. One thing is for sure, the Indian customer is sure to benefit :-).

Now doctors can have their websites with free listing on medical tourism promotions starting Rs. 5999/-. For details go to www.mansaimedia.com