What you don't know about Indian electricity business: or the birth of billions of dollars of companies

In the global Internet market, China and India, with their large population, are often referred to by the media as the two typical representatives of emerging markets. In many areas, such as smartphone growth and internet users, China and India have eye-catching figures that have attracted the attention of internet giants.

But in one area--electronic commerce--India lags far behind China. The authorities predict that China's e-commerce this year will be more than 180 billion U.S. dollars, and electric business giant Alibaba last year, "Singles Day", it achieved nearly 6 billion U.S. dollars in retail revenue.

What about the Indian market? Last year's online retail sales were only $2.3 billion trillion, according to Technopak, and last year's retail sales were only one-third of Alibaba's Singles Day.

However, this summer, India's E-commerce market, staged an eye-catching war of warlords. Amazon announced an investment of $2 billion trillion, India's local electricity business boss Flipkart, a breath of money to raise 1 billion U.S. dollars, another giant Snapdeal, is not expected to be weak, will soon announce a new investment deal.

--War opportunity

India's long lag in E-commerce, why in 2014 this summer, began to appear dazzling giant melee? According to media analysis, there are many reasons such as Alibaba listing and India's policy reform.

China's Alibaba Group, which now controls 80% of China's E-commerce market, has become a dominant player. Ali Group is preparing to list on the New York Stock Exchange, the latest news is that the listing date may be September 16.

Alibaba's valuation of more than 100 billion dollars has sparked global media attention. The listing could also set the record for the size of the technology company's IPO financing in history.

Alibaba's high valuations, reflecting the great potential and glamour of China's E-commerce market, have "awakened" India's E-commerce practitioners.

Flipkart and Snapdeal, the local electric dealers, from the US online retail giant Amazon, now want to be "Alibaba of India", hoping to sit on the overvalued value of India's huge internet market.

"Everyone is aggressively guarding and expanding their market share, and everyone is aware of the enormous potential of the Indian electricity market," said Pragya Singh, vice president of Technopak, a retail industry research firm in New Delhi, India. ”

For Alibaba's valuations, Flipkart executives say India can also produce 100 billion of billions of dollars of electric companies, implying that the company's development goals. Snapdeal's co-founder, Kunal Bahl, also represents its own business, very similar to Alibaba.

In addition to Alibaba's listing valuations, the Indian government's regulatory policy on E-commerce will also usher in a change of opportunity.

At present, India to foreign-funded enterprises in the field of E-commerce investment in the strict restrictions, such as the ban on "send goods to consumers," the direct retail, but can open a network of supermarkets, so that India's local companies to provide retail goods.

India's new government will allow foreign capital to invest directly in India's e-commerce sector, and some restrictions will be eased, according to sources.

Obviously, this for overseas electric business giant, even the handset and so on product's manufacturer in India constructs the electric dealer sales channel, will be a good.

--Action

The hottest news in the tech world is Apple's new big-screen mobile phone and the wearing of equipment, as well as the erosion of traditional television stations by video sites.

However, the Indian summer of the electric business giant war, did not escape the media attention.

According to foreign media reports, the Indian electric business has entered a mature period, the so-called new company, has long been no opportunity. From the buyers of commodities to the global technology venture, the focus of attention, in the existing less than 10 of the leading web site.

At the end of July, Flipkart, known as the "Amazon of India", announced a one-time gain of 1 billion dollars in investment, investors in the industry are "big shot" level-such as Tiger Fund, Russia DST, Morgan Stanley, Sofina and so on. Before the investment, the company received a total of investment, add up to 700 million of dollars.

Flipkart's current capital valuations, it is predicted, have reached $5 billion trillion. The founder of the company has set a 100 billion dollar valuation target.

The 1 billion-dollar investment is also the biggest single investment that Indian internet companies have ever received.

The day after Flipkart announced investment news, the US Amazon traded a rival announcement that it would invest 2 billion of dollars in India's electricity business.

Prior to this, Amazon entered the Indian electricity market, just over the first anniversary. Bezos, the company's Masters, said Indian consumers and small and medium-sized retailers reacted more than Amazon had expected in one year's operation, adding 2 billion of dollars in investment to get more markets.

Amazon's Indian network stores last year sold 1.6 billion of dollars in merchandise. According to the Technopak, Indian retailers will sell 76 billion of dollars in Amazon stores by 2021, nearly 50 times times more than they are now.

In the face of Flipkart and Amazon's "Investment horse", the US ebay-backed Snapdeal, the media predicts, may not be showing weakness and will announce new investment deals in the near future.

Snapdeal's last investment, which occurred in the two quarter of this year, revealed that the company had invested $100 million in $1 billion trillion in valuations, including Singapore's sovereign investment fund Temasek and the US black stone.

Snapdeal's big backer is ebay, which, in addition to holding stakes, has signed a commodity-sharing agreement with Snapdeal to help both sides expand their customer base.

By investing heavily, these big power companies want to be the market-winner. However, in the view of Indian analysts, none of the Giants can establish a dominant position like Alibaba.

Harminder Sahni, a consumer industry analyst in India, said India's E-commerce is huge and complex, and will form a game in which multiple players will participate, each with a certain share.

--Good electricity business

India's E-commerce, although far behind China, the United States and other markets, but India's unique national conditions, means that e-commerce in the country will have a greater market prospects.

It is reported that India's commercial real estate prices are very high, the real store sales of high rents, and the network retail, the cost of rent, the more advantages.

Raghav Gupta, a native Indian insider, said the price of real estate in India was irrational, so the price offered by E-commerce would be more competitive than physical retailing.

In addition, it is well known that India's large urban population, road congestion, traffic chaos, which makes people go out to buy big-ticket items, rather troublesome. And online shopping, express door-to-door to provide a great convenience.

With the advent of the mobile internet era, mobile shopping based on smartphones and tablets is gradually replacing computer-based shopping.

And in mobile shopping, India compared to China, has a certain advantage. Indians have a weaker purchasing power, and many people who are unable to buy computers are more able to surf the Internet through cheaper handsets, which can be more quickly over to mobile shopping.

Flipkart and Snapdeal two companies said that last year, the proportion of mobile phone shopping is less than 10%, but this year has grown to 50%.

Just recently, an executive at Google, a company in India, predicted that by the end of this year, India would overtake the US, and the popularity of cheap Android phones was the driving force behind the soaring population of India's internet users. It is reported that the popular popularity of cheap Andro in India, the price is only 50 U.S. dollars (RMB 300 yuan).

(Responsible editor: Lvguang)