Amazon’s India Strategy Post Flipkart – Walmart Deal

amazon deals with flipkart walmart

The competition between Amazon and Walmart is expected to stay intense in the Indian market post Walmart’s acquisition of flipkart. The coming years will witness a consumer oriented market with both players expected to reorient their market strategies.

The Indian retail industry has been in the storm of the eye of many global investors with an estimated value of $44 billion as of 2018. It is expected to grow at a CAGR of more than 20% and is expected to cross $200 billion by 2020.

Steps taken by Amazon India post Walmart – Flipkart deal
Amazon India is expected capture more than 30% of the market with estimated revenue of reaching $10 in the next ten years.

  • Improve grocery retail business: Amazon India is taking aggressive steps to get a hands-on the grocery retail business in India and has allocated $500 million to compete with Flipkart, who is expected to push its grocery business post Walmart’s deal and also to tackle Alibaba funded BigBasket.
  • Seller Lending Network: Amazon India has initiated a platform for lenders and sellers to provide sellers a chance to choose long term loans at competitive rates. It will soon open its APIs where lenders can directly plug in and lend loans to the sellers. It has already tied up six lenders which include Capital First, Capital Float, Bank of Baroda, Aditya Birla Finance, Yes Bank and FlexiLoans.
  • Global flagship 30-hours sale event: Amazon is planning to integrate its Indian operations more tightly with its American headquarters by combining its upcoming prime day 30 hour global sales event and offer massive discounts to its Prime shoppers in India.
  • Trial room at your door step: Amazon is planning to introduce its trial room Prime Wardrobe sale in India. Amazon has already introduced this scheme in the US, wherein it brings the fitting room right at the customer doorstep and allows them to try the fashion line before purchasing.
  • Reduces seller fees in furniture and luggage: Amazon India has lowered its seller fees on furniture and luggage categories to take control in this sector ahead of Flipkart, who has shown keen interest in this sector. Amazon has reduced the furniture seller fee by 2% and luggage fee by 1.5%.
  • Mapping the country via Geo –Tags: Amazon India is planning to map the entire country via geo-tags to improve their delivery network efficiencies. It considers this as one of their prime strategy to enhance customer experience as it prepares itself to battle the Flipkart-Walmart combination in the coming days.

Providing content in regional languages: Amazon India will provide content in local languages to provide customers with better shopping experiences in Indian languages. Further it plans to use machine learning and artificial intelligence at various levels of its value chain to provide region specific product recommendations.

– Pavan Mudholkar
Infoholic Research