Amazon and Flipkart are going head to head since the former entered the Indian market. Amazon India, however, was miles behind its Indian counterpart when it first came to India. Since then, it has progressed rapidly and is now neck to neck with Flipkart. The strategies, however, have been poles apart if compared. The American company totally depends on partnerships with local organizations while Flipkart is all about acquiring already established multimillion organizations.
Amazon India has the disadvantage of being an outsider while Flipkart thrives being a domestic company. Flipkart’s major source comes from smaller cities and towns while Amazon has intelligently understood its limitations and focused on the more developed parts of the country. However, Amazon makes up for that disadvantage by presenting 168 million products to Flipkart’s not so impressive 80 million. Apart from that, the growth rate of Amazon India is a hundred times more than that of Flipkart.
Amazon India in 2015 had a total revenue of $0.2 billion compared to Flipkart’s $1.6 billion. The former’s gradually increased to $0.5 billion while Flipkart jumped to $2.2 billion in 2016. The scenario changed drastically in 2017 as Amazon absolutely shattered all the growth records. It grew 283% to Flipkart’s 17%. However, Flipkart still managed to keep the number one spot by a nickel. If we compare the revenues as of 2018, Amazon India has bulked up to $3.2 billion while Flipkart skipped to $3.8 billion. The growth rate of Amazon India has Flipkart worrying for its spot.
According to a CounterPoint research, both the heavyweights accounted for 87% of the Smartphone sale in 2017. After such a conquest, Amazon India and Flipkart were looking at newer opportunities and directions to grow in. The former quickly jumped on the totally open market of Grocery while Flipkart launched its Grocery store in 10 metropolitan cities.
All of this comes to a final number of gross sales of that year. Barclays recently researched the gross sales of Amazon India and Flipkart for the year 2018. They were largely clouded by Walmart’s acquisition of Flipkart and this profited Amazon India in winning the race according to the investment bank. The study proved that Amazon India gross sales accounted for $7.5 billion while Flipkart was languishing in the second spot with $6.2 billion. Many found the reveal of the gross sales questionable since they partly relied on Walmart’s statistics.
– Unmesh Phule