Analysts say the total size of India's electricity market will be over $30 billion trillion

Absrtact: August 8, Amazon has been eyeing the Indian electricity market, which needs to be developed. At the end of last month, Amazon intensified its pace of development in India. Amazon announced that it would invest 2 billion of billions of dollars in its Indian business expansion. And just before a

On the August 8, Amazon has been eyeing the Indian electricity market, which needs to be developed.

At the end of last month, Amazon intensified its pace of development in India. Amazon announced that it would invest 2 billion of billions of dollars in its Indian business expansion. The day before, India's local electricity dealer Flipkart announced a successful financing of 1 billion dollars for business expansion. It seems that the current battle against India's electricity market is increasingly fierce.

Amit Agavar Amit Agarwal, manager and vice president of Amazon in India, the current market in India is small, but in the next few years, it will show rapid development.

What Amazon needs to do now is to set up a nationwide distribution system in India, and to invest in technology to prepare for Indian consumers, Agarwal said. At present, most of India does not have computers.

Agarwal added that the investment of 2 billion dollars was a 10-year period to see the development of the Indian electric industry. "We are willing to invest now to create long-term value for our shareholders," Agarwal said. ”

Many analysts have expressed surprise at Amazon's investment, which amounts to the total size of India's current electricity market. However, analysts believe that in the next six years, the total size of the Indian electricity market will be more than 30 billion U.S. dollars.

However, compared with China, the Indian electricity market in a few years after the scale is still dwarfed. You know, China's net sales last year were around 300 billion dollars.

In the Indian market, Amazon is a successor, and its status as Flipkart and ebay-backed SNAPDEAL.COM,20 billion will create an opportunity to overtake it.

Amazon says it will use the money to develop better websites, better mobile technology and better logistics to reach a large and growing middle class in India.

"They value the Indian market very much, which will be one of the fastest growing markets for their future business," said Ashish Jhalani, founder of Etailing India, an Indian consultancy and research firm. ”

In fact, Amazon wants more money in the Indian market, Agarwal said, but the government now bans foreign electricity companies from selling directly to Indian consumers.

At present, Amazon must recruit and train thousands of businessmen to use its website and logistics services, so as to achieve product sales. These merchants would pay Amazon a certain fee. According to Agarwal, sellers on the Amazon-India platform have been showing rapid growth over the past 12 months, now reaching 10000.

To meet the special needs of India's 1.2 billion population diversification, Amazon is conducting a pilot project to enable consumers who subscribe via the Internet to pick up their goods at nearby small community stores.

Agarwal said millions of consumers were the first to surf the internet, while mobile phones were their entry ports. In order for consumers to interact better with shopkeepers, companies need to invest more in technology.

According to Agarwal, 35% of the current Amazon India site traffic is from the mobile end.

At present, Amazon's biggest competitor is the local enterprise Flipkart. In terms of sales, Flipkart is India's biggest electric business. As of March, Flipkart's sales reached $1 billion trillion this year. Interestingly, the company's two founders were employees of the Amazon.

Analysts say Amazon has cash, technology and experience, but it is still in the learning phase of the Indian market. Moreover, in a fast-changing market in India, it is also a test for whether the huge Amazon can make the right decision quickly.

Amazon's challenge, Gialani points out, is how to accurately understand and localize.

Amazon says it's not worried. The Company believes that its knowledge of business is superior to anyone else and believes the Indian market will become big enough to accommodate many businesses.

"We're going to build a business platform with everything, and we'll do whatever it takes," Agarwal said. "(LI)