How Flipkart and Amazon are Shaping the e-commerce Scene in India

Indian and international media was forced to shower some attention, when Flipkart, the Indian e-commerce giant also known as “Amazon of India” in the west announced the $300 million cash and stock acquisition of country’s biggest fashion portal Myntra.com. Deals like this one are surely shaping the e-commerce Scene in India.

The company announced a fresh $210 million round of funding just seven months after closing a $360 million round. “The funding further strengthens our capabilities to deliver on our next stage of growth,” said Flipkart co-founder and chief operating officer Binny Bansal.

Flipkrt-Myntra Analysis Source: Economic Times

Flipkrt-Myntra Analysis                                                                            Source: Economic Times

Who’s the King of Indian e-commerce Market?

Another piece of truth is that After raising almost $600 million, Flipkart is still losing cash—which ousted it from being listed on India Stock exchange. Clearly Flipkart is finding it inevitable to fight against the cash bleeding state and crush the ever building competition keeping the long run picture in mind.  Amazon, the big daddy of e-commerce world wide found it the best time to land in the Indian market when masses have already been educated about the online ordering process and have become comfortable enough to shop for everything from vegetables to diamonds online. Amazon is looking to punch the competition in face with its one-day delivery and huge backup of experience and branding.

 

E-commerce Startups Focusing on tier 2 and Tier 3 Cities

In this process of evolution of online market scene in India, an innumerable force of e-commerce start ups confident enough to leverage the situation has erupted. Many outcome we have seen are the availability of out of league products, custom designs, untapped markets being explored and innovative products popping up. Major ones that need special attention are the flow of e-commerce into tier 2 and then tier 3 cities. New e-commerce portals are not just appearing in tier 2 and tier 3 cities, but the startups are looking to expand and reach the unexplored territory with their portals and sell.

There is an increasing number of “ready to use” e-commerce solution, which make it cost effective for the newbies and sustain the business until they enter the high margin sector.  I came across a provider of  “ready to use” e-commerce portal Twikster in the recent days and was fairly impressed with their ability to provide premium shipping services to start ups at price they wouldn’t need to worry. In a brief conversation with the founder Namrata Soni, I sensed a confidence and indiscreet will to enter the tier 3 and  further untouched markets. I found out that they were here to solve a market disconnect I would say.

I’ll write my next blog detailing on how the market disconnect is keeping a lot of sectors untouched from this era of online selling and there is a lot that needs to be done!! As the online sector is expanding everyday, the market size is inflating at double. Thinking that Flipkart or Amazon would actually suffice is a tough call to make. The tier 3 cities and further the rural sector stand partially invaded and wait for someone to disrupt and solve the cost.

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Anuj Sharma

I am based out of Shimla. Writing is my passion, and a part of my livelihood. I started writing here almost 3+ years ago and couldn't stop ever!! Apart from Twalkitout, I run an E-Commerce consulting Company named Omex E-commerce Pvt. Ltd. out of Shimla.

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