Weather New York, NY +83°F

Sectors

Facebook, Google, Amazon’s entrance to India turns country to an 'E-commerce battleground'

Close
(Credit: Brent Lewin/Bloomberg via Getty Images) The Myntra.com website is displayed on an Apple Inc. iPad in an arranged photograph in Hong Kong, China, on Wednesday, May 21, 2014. Flipkart, India's largest online retailer, will buy competitor Myntra.com, according to people with knowledge of the talks, to gain a business with higher margins and strengthen its position in the local market against Amazon.com Inc. General Images of Flipkart As India's Largest Online Retailer Said To Buy Competitor Myntra
January 18
5:24 AM 2016

Facebook, Google, and Amazon are among the tech giants that are trying to penetrate India. Bank of America Merrill Lynch Wealth Management analysts wrote that India will be "the next e-commerce battleground" in 2016 as major tech companies will make moves to enter the country this year.

Business Insider reported that Amazon will try to conquer the online retail market in the country; Google is under negotiations to allow its internet-bearing balloons fly in the country's airspace, while Facebook continues its debates for "Free Basics" internet program in the nation.

The Verge wrote that India's Telecom and internet regulator TRAI asked the people's view on Facebook's net neutrality issue. "Should the [telecom service providers] be allowed to have differential pricing for data usage for accessing different websites, applications or platforms?" was the first question. "Are there alternative methods/technologies/business models, other than differentiated tariff plans, available to achieve the objective of providing free internet access to the consumers?" was the second question.

Meanwhile, according to India TV News, the e-commerce industry boom may have adversely affected the retail industry in the country, but it has revived another peculiar sector, the state-owned postal network, India Post. It has raked in big profit from cash-on delivery consignments from tech companies like Myntra, Snapdeal, Flipkart, and of course Amazon. This business has brought in Rs 1,000 crore from April to December 2015.

Today, the three major ecommerce players in India are Amazon's subsidiary, Flipkart, and Snapdeal. These companies received a collective amount of about $7 billion in investment. The future outlook of the country's online e-commerce customers is the prospect to watch out for.

Presently, only 20 percent of the nation's youth are online. Most are still buying products in traditional stores. However, as more and more people use smartphones and other mobile devices, online shopping in India is expected to reach up to $220 billion by 2025.

© 2019 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics