The Indian ecommerce market is currently experiencing an out and out battle for the throne between homegrown Flipkart and global ecommerce superpower, Amazon. With the festive period right around the corner, the two big weights are pulling every stop to rule the Indian ecommerce market and are claiming to be the leader in the segment.

According to recent figures issued by the American ecommerce company, Amazon India has left behind Flipkart, not including fashion units Myntra and Jabong, in terms of value and volume over the past 18 months. On the contrary, Flipkart claims that they've experienced a growth of 65-70% in terms of gross merchandise value in the last few months, and was ahead of Amazon India by a decent 30 per cent in terms of gross sales (excluding sales from Myntra and Jabong).

Amazon claims that its Indian unit's gross merchandise sales have seen an impressive 59 per cent growth in the June quarter when compared to the figures clocked in during the same quarter last year. In unit terms, the growth stood at an even better 88 per cent. The Jeff Bezos owned company also revealed that during the March quarter, the ecommerce platform's growth in terms of value stood at 68 per cent and in terms of the volume, the figure came out at 85 per cent.

In order to understand the figure, one needs to keep in mind that Amazon India calculates gross merchandise sales after it has eliminated the tax component on each unit and take into account all product returns and cancellations.

There's currently a cut throat competition going on between Jeff Bezos' Amazon and India's very own homegrown e-commerce leader, Flipkart. Reportedly, Bezos' has recently decided to spend a whopping amount of $5 billion in India to gain significant share as the e-commerce market surges in the Indian subcontinent. The company is working hard to get a larger share of the $30 billion Indian e-commerce market. Flipkart, which currently enjoys a customer base of 100 million users plans on increasing the number to 500 million customers in the coming years. The company, which is in its tenth year of operation, is currently hosting a number of activities to celebrate the joyous occasion.

In an email to The Times of India, an Amazon India spokeswoman confidently boosts, "We are the market leader and have grown consistently across all parameters including traffic, new customer acquisition as well as things that matter to customers -selection, value and convenience."

While both the companies only shared their growth percentages, they haven't shared the exact growth numbers. However, their growth figures do leave behind the overall ecommerce industry's 5 per cent gross sales growth in the calendar first quarter and 20 per cent in the next. Indian ecommerce industry has once again gained momentum in the April-June quarter this year after staying lull since Diwali festive period last year.

According to industry experts, the boom period was a result of a number sale events held before the rollout of GST in July. In addition to this, post November's demonetisation, cash has finally started coming back into the economy and this also contributed as an important factor in the rise in sales figures. Experts also feel that the decline of Snapdeal made room for Flipkart and Amazon in the Indian ecommerce market.

According to a statement given by Satish Meena, senior forecast analyst at market research firm Forrester to TOI, they have observed that consumer sentiment and preference in India has shown that Amazon is strengthening its hold in the country, while Flipkart and Jabong have not been able to hold up as much in the second quarter of this year.

Amazon claims that it has registered a celebratory growth in categories such as home, fashion, kitchen and sports than in mobile phones. It also plans on continuing to invest in more categories, especially in consumables. On the other hand, Flipkart has maintained that it is the market leader in both the fashion and smartphone segments.

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.