India's electricity quotient accelerates the enclosure of domestic and foreign capital

Absrtact: In India's largest E-commerce website Flipkart announced the financing of 1 billion U.S. dollars, the US e-commerce giant Amazon announced in the Indian market to add 2 billion U.S. dollars investment. The prospect of India's E-commerce market has led to increased investment in the market by both internal and external investors,

The US e-commerce giant Amazon announced an additional 2 billion dollars in the Indian market after Flipkart, India's largest E-commerce website, announced a $1 billion trillion in financing. The prospect of India's E-commerce market has led to greater investment in the market by both internal and external investors, and the Indian electric business enclosure war intensified.

Broad prospects

In 2007, two young Bansar (Sachin Bansal), who graduated from the Indian Institute of Technology, Delhi, and Beanie Bansar (Binny Bansal) took inspiration from the Amazon online bookstore, creating Flipkart, At that time, almost no Indians bought anything except air tickets online.

As the first person to eat crabs in the Indian electric business industry, Flipkart faced many obstacles, such as consumers ' reluctance to fill out credit card information on the Internet, many customers without credit cards, and even consumers suspected that the goods purchased on the Internet would not be sent home.

Now, industry insiders predict that the Indian electricity market will grow rapidly in the next few years. According to Technopak, a New Delhi retail consultancy, although the Indian electricity industry is still in its infancy compared with China, it is expected that Internet sales will grow fast in India and may rise to an annual average of $32 billion in the next 6 years. India's Internet annual sales are about 2.3 billion dollars.

The Financial Times reported that Flipkart or the hope of a preemptive strike in the Indian electricity market could help the company establish an unshakable position like Alibaba in China. Alibaba has already occupied more than 80% of China's electricity market by creating a variety of electric business ecology.

And Flipkart in India's "territory" is facing the impact of internal and external enemies, Amazon and Snapdeal in India are known to join the war. At present, Flipkart has 22 million registered users, selling everything from clothing to electronic products.

Flipkart7 announced a 1 billion dollar investment in the new round of financing, including Tiger Global, US investment company Iconiq Capital and Morgan Stanley Investment Management. The Flipkart has already financed more than $700 million trillion.

One day later, Amazon announced an additional 2 billion dollars in its investment in the Indian market. Amazon entered the Indian electricity market last June, and now has more than 5,000 Amazon businesses in India. Some overseas media quoted Amazon chief executive Bezos as saying that Amazon would further boost its influence in the Indian market. He says India will be the fastest growing market for Amazon by current size and growth.

Some analysts believe that it is only a matter of time before Snapdeal financing remains competitive. Earlier this year, Snapdeal financed more than 100 million dollars, of which EBay paid 133.7 million dollars.

"Everyone is more active in defending and promoting market share growth. "Everyone recognizes the potential of the market," Pragya Singh, vice president of Technopak, said in an interview with the Financial Times. "Alibaba will launch its first public offering, which is estimated to be worth more than $100 billion trillion, an incentive for Flipkart and Snapdeal." Flipkart said India could also create a trillion-dollar electric-business enterprise, Snapdeal co-founder Bell Kunal Bahl said it was "the same" as Alibaba.

However, Indian retail analysts believe that no company can establish such a dominant position in the country's electricity market. "It will be a struggle for many people. "India is the last big market and no one will give up," said Sani Harminder Sahni, general manager of Wazir Associates, a consumer consultancy. They all want to get a piece of it. ”

Multi-dimensional competition

India's expensive real estate prices make it much more cost-competitive than traditional retailers, and in India's crowded urban centres, online shopping and door-to-door service are attractive.

"The cost of real estate in India is absurd, so electricity dealers will be able to provide prices that are superior to physical stores." Gupata Raghav Gupta, a senior retail consultant, says it is becoming increasingly painful to travel in India.

At the same time, cheap smartphones have also made it possible for more Indians to surf the internet regularly. Flipkart and Snapdeal all said that from last year to now, customers using their mobile phones to land their websites have grown from less than 10% to more than 50%.

In addition to the General department stores, the Indian electricity market has spawned a large number of fashion, home, and even glasses and other segments of the industry participants. But Mr. Singh says investment in start-ups has dried up last year and investors are more focused on bigger companies.

However, as the electric business enterprises are still in the process of chasing growth, upgrading and expanding technology and logistics, and wooing new customers, profits are still far away from the market prospects. "We do not intend to start thinking about profitability in the short term," said Flipkart-Bansar, co-founder of the Alliance. ”

Bell said Snapdeal would be IPOs in two years, while Bansar ruled out the possibility of Flipkart's listing this year.

The franchised electric business enterprise is not the only member that is crowding out the industry space. US retail giant Wal-Mart announced in July that Indian government restrictions had prevented the company from setting up a large retailer in India, though it would invest more than $100 million in wholesale stores, and was experimenting with an electric-business platform to provide online orders and delivery services to wholesale customers. Indian entity retail conglomerates, including future group, are also planning to expand their business on the Internet.

In addition, manufacturers and brands may also join the Electric War Bureau, the establishment of their own sales sites. Some industry analysts believe that consumers will certainly benefit from it, companies will face a long and difficult journey.