Alibaba or Amazon: Who Will Win in India?

Alibaba or Amazon: Who Will Win in India?
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Highlights

E-commerce makes up less than 1% of all Indian retail sales but is growing quickly. E-commerce sales are expected to jump to $55 billion by 2018, up from $15 billion in 2015.

E-commerce makes up less than 1% of all Indian retail sales but is growing quickly. E-commerce sales are expected to jump to $55 billion by 2018, up from $15 billion in 2015.

There are 3 big players in India's e-commerce industry:

Flipkart, a homegrown Indian marketplace, which has about 45% of the market

Snapdeal, also a homegrown marketplace, with 26% of the market

Amazon (AMZN), with about 15% of the market

Alibaba (BABA) is also a player as it has backed Snapdeal and there are rumors it might take a position in Flipkart. It also owns a stake in Paytm, India's largest mobile wallet company with about 140 million users.

As for delivering the goods in India's cities, it's instrumental to look at how the dabbawallahs deliver over 200,000 lunches to office workers in Mumbai every day, and the implications for e-commerce. I really recommend the 2013 movie “The Lunchbox” now available on Netflix and Amazon. You'll be amazed at how they transport lunches via train and bikes to office buildings while rarely making a mistake or delivering late.

But for all the challenges facing the retailers, there are some restaurant chains who have managed to make it. They offer valuable lessons.

McDonald's (MCD) has been successful by tweaking its menu towards Indian tastes, which means offering a lot of vegetarian options and spices.

Dunkin Donuts (DNKN) and Domino's (DPZ) have also managed to thrive in India. Both franchises are managed by Jubilant Foodworks, which trades on the Bombay stock exchange.

But do Indians really want to eat donuts? And why is Dunkin Donuts called Dunkin Donuts & More in India? Sheraz explains how they found their niche.

India is an amazing growth opportunity for many global brands. Retail is an untapped area. Who is going to be able to take advantage of the opportunities?

Source: TechGig.com

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