Reliance has set up about 12,000 stores of Reliance fresh across the country and can enable fast delivery and returns of products while Amazon on the other hand has big high tech warehouses and access to 11000 pin codes in the country. They resort of bulk buying at low prices and then undertake mass transportation across the country and deliver at attractive prices. Recently I purchased a 255 litre Samsung refrigerator from Amazon, I got it at Rs 2500 less than the listed price and free delivery too. As an independent customer, will I be looking at speed of delivery or cost of acquisition ?
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Amazon is a global leader with about 0.6% (0.006) of revenues coming from India, ie. $2.2 billion out of a global revenue of $380 billion. . Amazon India recorded revenue increase of 48% at INR 16200 crores and 18% reduction in loss to INR 4748 crores.
As per a report from Times of India (click here), egrocery market in India has grown by 60% in 2021 and is expected to grow by average 45% in 22, touching a total of $18 billion by 2024.
Research firm Forrester forecasts online retail sales in India to grow at a CAGR of 30% between 2019 and 2024 to touch $359 billion.
Reliance takeover of Future group consolidated their position in the retail market in India increasing sales to Rs. 350 billion in 2020.
Jiomart is making use of whatsapp to increase its penetration and hopes to rope in 15 million business users of whatsapp and 400 million ordinary users.
The stage is set for an explosion in the e-retail market in India with a third player, Flipkart with Walmart backing. Who will finally get to control the Indian ecommerce market, we have to wait and see. Meanwhile it is good time for customers, with excellent availability, almost infinite variety and low costs. How long can this good time continue for the customers ? Can technology leader Amazon play an important role in this game and demolish everyone else ?
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