What? if amazon buy flipkart
Amazon is an American e commerce, cloud computing company that has changed the status of e commerce in India. It has taken a huge market from Bangalore based Indian company flipkart. Flipkart founded by Sachin Bansal and Binny Bansal initially realized the increasing demand of smartphones in India and made it their mission to sell smartphones, the latest of them online. They envisioned this and made it work. Now,a huge number of people prefer buying not only products online but also smartphones and accessories.
Flipkart was that one huge e commerce company that was in monopoly in the Indian market until Amazon came into limelight in India. Flipkart was the first to start selling smartphones, their fashion unit Myntra was the top most fashion e commerce site available in India. However, their downfall started with the Big Billion Days offer that kept heavy traffic in the site and their less preparation for scaling up to it. Amazon in one hand was still competing to reach that level and in the other hand served user with many user friendly interactions in their site that helped customers in hassle free shopping. Their division of today’s deals, lightning deals, hot deals etc. helped users a lot.
While flipkart was focused in electronic commerce and generated 80% of revenue from its fashion unit Myntra, Amazon started with Web hosting, content distribution,Amazon Prime and Amazon Cloud. After its failure to meet china’s market it shifted its focus to India and grabbed huge market in India.
In the year 2016, if you go by statistic Revenue of Amazon was US $107 Billion and that of flipkart was US$1.5 Billion. Flipkart had only one market that is India while Amazon spread its market to China, India, Japan, France, Germany,Netherlands, Italy, Spain, UK, Canada, Mexico, USA, Australia and Brazil.
After Walmart’s declaration of buying large number of shares of flipkart, amazon showed their true interest to take over flipkart by purchasing more than 50 percent of its shares. However, flipkart wants to make that deal with Walmart.
Amazon overtaking flipkart can be a game changer as flipkart is supposed to be the best e commerce company ever with the best delivery mechanism and skilled manpower than that of Amazon.
Here are a few points as what happensif Amazon buys Flipkart?
By overtaking the biggest Indian E-commerce company it not only extends its hand in the market but becomes the solo giant online shopping industry.
With flipkart it also gets its biggest fashion unit Myntra.
Amazon is planning to invest enormous amounts in Indian market. They are willing to invest US $5Billion approximately.
With its Amazon Prime and Kindle being huge success, they are now opening up to own groceries and food items in Indian market. And if they are successful with overtaking flipkart they make it to its best use.