Amazon’s Perfect Timing for India
On June 5 Amazon launched www.amazon.in . The consensus opinion among most internet watchers was that founder Jeff Bezos and Amazon would need to work very hard to play catch-up in the Indian ecommerce market that homegrown players like Flipkart had largely sewn up. Worse, Amazon was starting off as a third party marketplace (ie, it provides the platform for others to sell), instead of selling directly.
But reality may be exactly the opposite. Amazon seems to have chosen an entry date and strategy that allows it to use its strengths to maximum advantage.
Advantage 1: Others have done the groundwork already
Despite all the frantic coverage it generates in the media, the size of the Indian ecommerce market last year was estimated to be only between $1-2 billion (around $1 billion said McKinsey, while Forrester Research pegged it at $1.6 billion). These estimates exclude $6-7 billion worth of travel bookings that are made online.
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