The US tech giants have been ruling the global markets for a long time now. Amazon is an online retail platform that has been one of the success stories from that nation. Apple became the first ever American company to cross the $1 trillion valuation mark. It reached this milestone in the month of August this year. However, Amazon, which is another tech giant from the US quickly followed suit. It touched the $1 trillion valuation mark next month in September. This feat makes it a huge success across the globe.
Amazon’s India business has a huge role to play in achieving the market capitalization. The Indian arm of the company is valued at $16 billion and the net sales are expected to cross $11 billion by 2027. The online retail segment has seen a huge surge as more and more customers have turned towards the platform in recent years. Through its e-commerce platform, the company has also started its online payment arm called Amazon Pay. The online payment applications have really taken off in India after the government’s constant efforts towards a digital economy.
Amazon has ventured into various sectors such as digital content, food retail and same-day delivery services. Amazon prime has 10 million members. Amazon has invested $500 million in its Food retail business and they have started their payments arm too known as Amazon Pay. These business verticals have allowed the US giant to grow aggressively in India. This makes India one of the most valuable markets for Amazon. In addition to these, Amazon also has its internet services, investments in Indian startups, AI Voice Assistant – Alexa and Bluetooth speakers – Echo.
Following the success of the American brands in the Indian markets especially in the technology sector, the Chinese companies are eyeing for the top spot here. This is the reason that the emerging Chinese giants are investing heavily in the Indian market to gain significant market capitalization. We have seen the trio– Baidu, Alibaba and Tencent incest massive amounts into the Indian market. India’s largest startup, PayTM has most of its investments form Alibaba. Similarly, numerous other small and large startups have investments from the Chinese companies.