Amazon has shown incredible growth signs in India which could unsettle the local e-commerce giants
Amazon Inc.’s overall business has been growing at a very fast pace in recent years. The company is not only focused to improving and expanding its e-commerce business but has equal eyes on the cloud computing division and the streaming business. However one thing which is very important to the US retailing giant is the need to settle in the Indian e-commerce marketplace. Due to its Prime membership, it gained immense popularity and traction in the US market. Likewise, significant growth has been reported for its Indian operations.
According to the India Times, Amazon India growth momentum this year can prove to be a great threat for the established local players. It is believed that its growth will unsettle the likes of Flipkart and Snapdeal in a very stiff and tough e-commerce market as AMZN’s online shipments jumped 150 percent in the first three months only. The managing director of Indian operations, Amit Agarwal, said in a statement that the company’s operations in the region continue to grow at an ‘extremely’ fast pace when compared to the local e-commerce giants. He also expects that the robust growth and momentum will continue throughout the year.
Amit Agarwal was recently ‘inducted’ in the global leadership team of Jeff Bezos. He said in a statement “We were growing at 3-4 times the rate (the overall) landscape was growing. So we exited 2015 with a very high bar for growth in 2016. What we saw in the first quarter of 2016 was that momentum has not slowed.”
It is known that the online retailer is currently in a very tough competition for a market share and market leadership with the likes of Flipkart and Snapdeal. And all parties have been heavily investing in their expansion plans, marketing, strengthening supply chains, and stealing customers with attractive prices and discounts. But one thing where Amazon is better than Flipkart and Snapdeal is the power to raise money. Both Indian e-commerce players are struggling to raise money for their facilities however the online retailer has been pouring millions in its India operations.
Mr. Agarwal added, “We (India operations) continue to be Amazon’s fastest-growing geography. Pretty much in all the inputs that we track… we know we are the leader. But “we don’t fool ourselves with sellers engaged with the platform… what we track is the total number of sellers who are active, which has grown by 250% year-over-year to more than 85,000.”