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  • Category: Miscellaneous

    Indian e-commerce space taken over by foreign companies like Amazon and Walmart.

    A few years ago there came a boom in online shopping in India with innumerable sites popping up in online space. The trend still continues but now these Indian e-commerce websites being taken over by giants of foreign countries who have already established themselves long ago and have very deep pockets.
    Snapdeal, Flipkart, ShopClues were names everyone was aware of as there were times when these three competed against each other with discount offers, festival sales, round the year discount, etc but now Snapdeal is at the verge of closing down, ShopClues hardly doing any business and Flipkart being almost taken over by Walmart.
    There are many other websites like Jabong, Myntra, Jaypore, etc but soon they will also be up for sale to foreign companies in name of Investment.
    Amazon entered the Indian e-commerce space and totally changed the mathematics of Indian e-commerce sites. Now another giant Walmart entering India will be like 2 giants of USA fighting on Indian soil.

    Now who is the real winner? Is it the consumer or is it the Indian economy or is it the US giants Amazon and Walmart.
  • #638382
    Yes, it is true. But that is the rule of the competition. The most powerful will win. When Indian e-commerce companies will be strong enough to take on the multinational giants, they will also succeed and common men will be benefitted because of intense competition.
    Beware! I question everything and everybody.

  • #638390
    The reason for foreign company penetration high into the Indian homes , thanks to the wide openings in e commerce business, I blame the Indian online companies for failing to understand the need of every Individual and for that we must appreciate the marketing techniques of foreign e commerce companies. Have you ever thought that for last rights of a human being who is dead, what are all required is now available online. Either too one has to run around and get the things done at the little available time. Such is the facility given by foreign e commerce companies. So we have to brace up to compete with them.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #638434
    Many Indian sectors have been infiltrated and taken over by the MNCs and private players. For instance the food sector, the IT sector, the FMCGs, health care etc.

    Similarly the Indian e-commerce would the same way. The Indian brains will start things and the Foriegn brands with money will take over. In the guise of development, foriegn investments, I think we are slowly encouraging capitalism.

    It is like two giants eating up all the smaller fry in the field and both surviving without fighting with each other.

  • #638439
    It is quite true that the big fish will eat the small fish and continue to survive in this business. This has always been a very low margin, very high volume business and only those with huge pockets can survive. Secondly, Indians still prefer to go to the nearest shop and buy everything fresh. No e-commerce player can penetrate the lower end of the market and survive.

    Thirdly, the logistics problem will simply eat away the profits of even the foreign players. Precisely why even Amazon has not still made any money in the Indian market. They will fight it out, though, only because they have huge pockets. The shopping malls in the metros has already drawn in the young generation, who buy from such shops only because of the snob value, knowing jolly well that everything is very costly there.

    Fourthly, Amazon and their cousins can hardly penetrate the smaller towns and still smaller villages. This includes the outgrown villages, where the unorganized sector and the local brands will continue to survive and make huge waves in every single product.

    For example, thousands of small manufacturers of pickles survive in each of the five South Indian States. Each and every major branded player is no match to the taste and knack of the small player.

    Yes, while the e-commerce in this field will go the MNC way, given Indian realities, they will still find it very tough.

  • #638442
    The existence of anything moves around competition. If we are able to survive through the competition then we have to come up with good offerings & in case this is missing then we are liable to extinction. This has been the case with many of the companies in the past & in the current scenario, this happening wouldn't be the exception.

    So, with the above facts, the Indian consumers will in no doubt would be getting the benefits but the big revenue part will leave our country which could have used for the growth of our nation. But on the another side these big companies will lead to more employment options & creation of infrastructures along with the upbringing of latest of the technologies to the Indian soil.

  • #638470
    It is true. The market is completely dominated by foreign companies and they are minting money and the field is now with full foreign giants and for Indian companies it is very difficult to face that competition. I don't foresee in the near future any Indian company will give a fight. Pantajali has made some inroads in the market but not in emarket. Indian companies are unable to withstand the competition. The government has to think and put some restrictions in case of foreign companies doing this online business. Then only some Indian companies can try. Otherwise the Indian money will be leaving India in the form of profits to these foreign companies. These days there in no single company which is having a good business in emarket.
    drrao
    always confident

  • #638472
    The online companies who have a sturdy software and good warehouse and resellers network are successful in this area and definitely Amazon is having an edge over others in this respect.

    The companies who are not customer friendly can not survive in this business which is being remotely managed by a few people sitting behind their desktops or laptops. The whole of this business is based on the quick delivery and follow up messages at every event.

    Amazon has a very good refund policy and customers are happy about it. Sometimes they are supplying a new gadget in place of the defective one without taking it back. It may sound surprising but it is true and I have witnessed two such cases.

    Many people feel it easier to buy items online but there are a large number of persons still going to nearby shops and purchasing after complete checking of the items and doing negotiations of prices.

    Knowledge is power.


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