The boxing bout between Amazon India and Flipkart continues, as intense as it has been right since the former entered into business in India. However, for the first time ever, the gross sales of Amazon India have gone ahead and overtaken those of Flipkart, as per a report by Barclays.
The Seattle-based Amazon launched its online shopping website in India back in 2013 and even though it had the backing of its worldwide marketplace, it failed to have an immediate impact in the industry, facing competitors like the homegrown Flipkart and Snapdeal.
5 years later, however, they have finally managed to go ahead of Flipkart in gross sales, generating $7.5 billion in yearly sales (year ending March 2018) as compared to $6.2 billion of Flipkart. This comes as a surprise after Flipkart was recently acquired by global retailing giant, Walmart. However, these figures don’t include the gross merchandise value from Myntra and Jabong, Flipkart’s subsidiaries.
Out of all the booming industries in India, the e-commerce is one to watch out for at this point of time. The current number of people actively shopping online in the country is around 80-90 million (2017) and this figure is set to double and go as high as 180-200 million by 2020, as per estimates.
Apparel and consumer electronics are currently front-runners in this market and the value of the market expected to grow to double ($40+ billion) by the same year 2020. Flipkart will need to buck up in the coming months, as Walmart’s acquisition was a record one, becoming the largest brick-and-mortar retailer deal for $16 billion, while Amazon has invested only about $5 billion in India.
Amazon could further extend their lead over lead over Flipkart, with another rumour coming in of the former set to buy as much as 9.5% stake in the Future Retail group, which is a very popular brand in India. On the other hand, Flipkart recently acquired Ebay India and rebranded it to 2GUD. However, it overall revenues, Flipkart is still ahead of Amazon, with $3.8 billion in revenue over Amazon’s $3.2 billion in the last financial year.
Who do you think has the brighter future in India? Who do you do your shopping with anyway? Flipkart? Or Amazon? Either way, keep following ReadScoops.com for more updates from the Indian e-commerce industry.
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