Conventional retail heavies have gone crazy over Amazon CEO Jeff Bezos’ plans to invest $10 billion in India, to take the fight to the e-commerce giants. Bezos said during an interview with ET that the investment will be spread over three years.
His competitors are rightfully concerned about Amazon’s impending onslaught. Amazon’s Indian website Amazon.in beat the market leader Flipkart for the first time in 2018 by adding more products and having more frequent delivery than Flipkart. Experts say that Amazon can snatch away $12 billion in market share from Flipkart as a result of its investment plans.
Most importantly, Amazon.in will have local partner for logistics, payments, retail and seller services in India as well as a research and development lab to help build its software.
Brick-and-mortar retailers seem to be taking the news in stride.
Let’s see what is going on and the hostile messages you can send to the man responsible for this glorious moment of self-actualization! CEO Prime Minister Of India reads out this tweet by "May India's # digitaleconomy realise its full potential on the back of Prime Minister 's JAM movement.” pic.twitter.com/8ZcgDQP1mh — Suresh Prabhu () January 13, 2019
After KPMG cautioned customers that they should carefully choose their smart appliances, realtors called on Amazon to be cautious about investing in, well, housing.
The widespread concern for the viability of traditional retailers here is no different from other global markets. Widespread use of e-commerce in China is causing loss of revenue for the brick-and-mortar shops, and in France, where Amazon is being criticized for not investing enough in trainings, the e-commerce giant has threatened to move elsewhere.
Amazon’s huge investment is changing the face of the Indian e-commerce world by encouraging local retailers and large brands to get into the e-commerce. It seems quite safe to say that Amazon Prime will become quite popular in India in the near future.