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Personal experience suggests otherwise. It has been years I have used Flipkart or any other website to order online (or watched anybody I know do so). It is alw
by perryizgr8 3y ago
Personal experience suggests otherwise. It has been years I have used Flipkart or any other website to order online (or watched anybody I know do so). It is always Amazon. And online purchases are way up, even compared to a year ago.
Almost everybody with a TV I know has a Fire TV stick. Most of my friends have at least one Echo device. A couple have even gone all in and put an Echo in every room.
Prime video is extremely popular, they produce a lot of Indian content and license a lot of regional stuff too. They even telecast a live cricket series recently.
They've even raised prices for Prime subscription, which indicates that they're confident people will pay more for what they're offering. Hardly the signs of "scaling back".
Personally, I feel the article is not well informed. For example it makes the assertion that Amazon is lagging Flipkart. It is absolutely not. Flipkart is a joke. Flipkart sells a lot of exclusive mobile phones on razor thin margins (maybe even net loss), and since phones are relatively high value items the GMV turns out to be higher than Amazon's. Amazon doesn't offer deep discounts on phones, which is fine IMO. GMV is not everything.
Similarly, TFA references Amazon’s "shutdown of multiple services".
1. Amazon Distribution - this was a very small scale operation, maybe the pilot just didn't work out. This was operating in 3 districts in the country (we have 766 districts).
2. Food delivery - this is a tough nut to crack in India, and Amazon was incredibly late to the game. Even established players (Zomato, Swiggy) are always struggling. People simply aren't ready to pay a substantial portion of the bill for delivery in India. This may well turn out to be a wise decision in the long-term. There might be a long struggle and no big profits in this game.
3. Online learning platform - I have no idea why Amazon thought this was an appropriate market for them. They were very late in this too. The competition is cut-throat, and it is a really unique market. I don't think they would have been able to make a space for themselves here.
On the other hand, Amazon launched its second AWS region in India and pledged to invest $4.4 billion in its cloud operations in the country by 2030. Hardly a "scaling back".[1]
[1] - https://techcrunch.com/2022/11/27/amazon-shutting-down-wholesale-distribution-in-third-business-exit-in-india/ https://techcrunch.com/2022/11/27/amazon-shutting-down-whole...
- bharathyes 3y agothe article is based on Amazons document and not based on subjective personal experiences. "amazon lagging behind flipkart" comment was in regards to market penetration in smaller towns. Given that all the gier 1 cities are well covered by the tech giants the next market to tap into would be the small cities and towns. the arsicle indicates thats where amazon it falling behind flipkart in making progress.
- akritrime 3y agoThis provides a very narrow view of India. Anecdotally, I don't know anyone who has any Echo devices in their home. Nobody cares about Fire TV stick, everybody is doing fine with their setup box. Amazon lagging behind Flipkart is very real in numbers, for each of their big sales, Flipkart almost always outsells Amazon. And Flipkart for electronics is almost always better than Amazon. Amazon is miles ahead when it comes to price, but flipkart has them beat where it matters - price and serviceability.