A report released by Inc42 Plus shows that by 2026, the Indian e-commerce market will have exceeded US $200 billion, with a compound annual growth rate of 19%. In 2021 alone, during the festival period, e-commerce GMV surged by 23% to $9.2 billion, a significant increase from the previous year's $7.4 billion.
It's inseparable Amazon India Station and Flipkart The promotion effect brought by the contest.
Flipkart's Big Billion Days (BBD) and Amazon The Great Indian Festival (GIF) on the Indian website was originally planned to be held on October 7 and October 4, respectively, but both chose to launch a big promotion on October 3, highlighting the importance of the two e-commerce giants to the Indian market.
In fact, both companies have repeatedly changed the date of the promotion to take the lead. According to a report of RedSeer, the festival will be greatly promoted in 2021, and Flipkart Group (including Myntra and Flipkart) will account for 62% of the market share. In addition, Flipkart application will lead with 50.5 million downloads in 2021, while Amazon India application will have 43.6 million downloads.
The entry of the two giants has made the competition in the Indian e-commerce market extremely fierce. Flipkart and Amazon have launched their own brands and specific functions and value-added services in India, and have gradually expanded to market segments to increase their competitiveness.
Flipkart Group has rapidly diversified in the e-commerce field. Its subsidiaries include Flipkart (a pan category e-commerce platform), Myntra（ Fashion+ Category e-commerce platform), Flipkart Wholesale, Flipkart Health+, Clearrip (OTA), Shopsy (social e-commerce platform), and also a payment application PhonePe The majority shareholder of.
The main businesses of Amazon India include Amazon India (pan category e-commerce platform), Amazon Music (music streaming media), Prime Video (OTT video) Amazon Pay (payment application) and Perpule (retail technology company), in addition, they also hold 49% of the shares of More (food and grocery chain store of Aditya Birla Group), and the companies invested include MyGlamm (D2C brand home), Bankbazaar (loan technology company), etc.
In short, the Indian e-commerce field is currently experiencing a degree of duopoly, although many local e-commerce platforms in India have also carried out large-scale promotion activities during the 2021 holiday, such as Tata CLiQ, Reliance and Meesho However, in the face of the "big factory", the effect is still weak.
Flipkart was launched in 2007 and was Wal-Mart In the first few months of the outbreak of the epidemic, Flipkart broke many records. At the beginning of the epidemic, people's travel was restricted, and the number of new users of Flipkart soared by nearly 50%. During 2020, the number of sellers settled on the platform will increase by 35%, and maintain the growth momentum in 2021. The number of APP downloads will also hit a record high.
Data performance of Amazon and Flipkart
From January to November 2021, Flipkart's display browsing volume (about 992 million times) on Google Play Store will exceed Amazon India. According to the data of AppTweak, the display browsing volume refers to the browsing volume obtained when the application appears in the "similar application" recommendation column on the competitive product page. Flipkart obtained about 31% of the display browsing volume through the social application Meesho, which is about 307 million.
Amazon India's display browsing volume is about 681 million, and about 36% of the display browsing volume from its old rival Flipkart through the Google Play app store is 245 million times. This means that about 36% of the browsing volume of Amazon India in India actually triggers the Flipkart application first.
The second exposure of Google Play application is largely due to the recommendation mechanism. Flipkart's business model is very similar to that of Amazon, so Amazon and Flipkart can drain each other. Flipkart recently set foot in social media e-commerce to facilitate its platform Shopsy to compete directly with Meesho, DealShare and other companies. This emerging company has attracted more than 2.5 million sellers, 51 million users and more than 150 million products Listing This is one of the reasons why Google Play recommends Flipkart in Meesho (a social application).
Holiday performance of Amazon and Flipkart
Holidays are the most critical period for any retail company. As India's economy gradually recovers, Amazon and Flipkart are sharpening their swords. Inc42 cooperated with Clootrack, a real-time customer experience analysis platform, to analyze the sales of these two platforms in October 2020 and October 2021. The following are some key points mentioned in the report.
As far as consumer experience is concerned, Flipkart has won the hearts of Indian consumers in this year's holiday (as of October 2021). It surpasses Amazon in several dimensions, including cost performance, satisfaction, delivery experience, and distribution accuracy. Based on the analysis of consumer experience, the report points out that Flipkart, in the 2021 holiday rush, has more effectively mobilized consumers' shopping mood than Flipkart in Amazon India. Consumer satisfaction ranks first among all platforms, and scored 9.7 points more for the brand. But in terms of return and refund services, Amazon is better.
The e-commerce battle between Amazon and Flipkart
Flipkart and Amazon India have been monitored by the Competition Commission of India (CCI) due to the unfair competition caused by the suspected promotion of specific sellers on the platform. The e-commerce draft aimed at "protecting consumers" and "strengthening market supervision" may form a certain resistance to the development of e-commerce platform business. Bypassing these rules will immediately incur the censure of the regulatory authorities. At the same time, however, the restrictions on time limited special sales, second killing activities, the listing of imported products, and the deletion of the "related parties and affiliated enterprises" of the sellers on the platform may cut the platform's revenue.
In addition, the All India Traders Association (CAIT) launched a one month survey on Amazon India and Flipkart in September 2021, saying that overseas e-commerce companies are having a negative impact on India's economy and retail market. CCI said that the transaction between Amazon India and Future Group since 2019 "should continue to be put on hold" until the end of the new round of review. The reason is that Indian civil organizations have launched protests about the unfair competition between overseas e-commerce platforms and Indian small and medium-sized enterprises.
In the past two years, Amazon and Future Group have been in a confrontation. The former hopes to block the merger of Future Retail and Reliance Retail according to the transaction in 2019, but Future Group said Amazon cannot block the transaction.
Reliance Retail is an omni channel retailer in India, covering all vertical categories. If Future Retail, which owns FBB, Big Bazaar, HyperCity and other brands, merges with Reliance Retail, the latter will be unmatched in offline retail (especially supermarkets) and eventually lead the online channel. It is reported that it has begun to build applications.
Obviously, considering that the investment in Amazon India's online retail industry has exceeded $6 billion, the accusations around the legal level and the increasing problems of future retail transactions have caused Amazon India to get into considerable trouble. In addition, Tata Group, one of the largest enterprises in India, has also joined the Indian e-commerce war. Its super app TataNeu will be launched in early 2022.
In general, the entry of Indian giants will have a significant impact on Flipkart, or Wal Mart behind it, as well as Amazon. At present, Flipkart accounts for about 15% of the retail market in India, while Amazon India accounts for the second with less than 10% of the market share. Affected by the Future Reliance transaction, the two may not be able to survive without the accountability of the regulatory authorities. (Source: Beluga out to sea ）
