Amazon Steps Up to Dominate the World’s Fastest-Growing E-Commerce Market
According to Forrester Research, India is the fastest growing market in the world of e-commerce. Although the country now lags behind China and the US in terms of revenue generation e-commerce, it has great potential, as the industry is growing with terrifying CAGR (compound annual growth rate) of more than 31%.
Prior to 2021, sales of e-commerce in India is expected to reach $64 billion, and it is likely that growth will continue beyond that, since most of the population still live in small cities and towns. E-commerce giant Amazon (NASDAQ: AMZN) does not want to miss these feeders, so do not leave a stone upon a stone, to click on the huge opportunity in India.
E-commerce Gaint Amazon is Fast-growing market in world
The company has made numerous moves to expand its business in India in recent months, but its latest expansionary measures could take it to another level. Let’s see how.
Amazon’s Shoppers Stop stake will bring it closer to customers
Amazon recently took a 5% share of the Indian Shoppers Stop departmental store chain for $ 27 million dollars. It may not look significant monetary investment, but its advantage can be durable. First, Amazon will be able to create “centers of excellence” 80 Shoppers Stop place, with 20 additional seats planned for the future. In these centers, customers can check the products for sale online from Amazon.com. Thus, the company can save pain strategic acquisitions of real estate and building its own infrastructure from scratch.
Second, buyers Stop transaction will bring more than 400 brands in the portfolio of the Amazon in various categories, such as shoes, clothing, beauty and accessories, providing customers with a wider selection of items to choose from. In addition, Amazon brand in India will gain momentum through the promotion of SHOPPERS natural stopping places, increasing the company’s visibility in the major markets, having spent underground.
In addition, shoppers stop was the adoption of strategies to enhance the attractiveness of a millennial customers. He introduces the brands that are popular in this category, but limited presence in physical stores. This step can help the company to increase foot traffic to their physical locations, which ultimately benefits the Amazon are getting closer to the big client bases in the country.
In addition, customers who are in the Amazon centers of expertise in the buyer to the place will be able to watch the smart home capabilities of its Echo household assistant first-hand.
Amazon also offers one year of its Prime membership program for free from the Echo family of speakers in India. It’s a smart move, as India is currently the fastest growing market of Amazon Prime, and the one who comes will offer e-commerce giant to add more customers to its ecosystem. Amazon currently has more than 11 million products in accordance with the plan subscription premiere in India, 40% of the total volume of orders is reportedly based on the members. Getting more people to sign up for Prime is a good thing for the company.
Amazon’s digital push payments will be another catalyst
Digital payments market in India is expected to clock a stunning annual growth rate of nearly 59% in 2023, so it’s not surprising to see that Amazon is attacking this opportunity. The company expanded its digital wallet, which was good only for Amazon purchases to other transactions and offers a prepaid option.
As you can see, customers can already use Amazon Pay, to pay bills, books and cinema tickets for the bus or dine out, among other services of third parties. In addition, Amazon is already doing its bit to increase the popularity of the platform, offering significant discounts on every purchase through the platform during special days of sale.
Not surprisingly, Amazon Pay transactions in India during the recently concluded festive sale season increased 25 times. Such moves should help Amazon add more customers to its digital payments service, which will bear fruit in the long run thanks to the secular growth of this space in India.
Thus, Amazon is trying to cover as many bases as possible in India, moving in the fast-growing niches such as digital payments, or closer to consumers through retail locations. This will complement the company’s strategy to attack the lucrative markets in India, such as food, as customers locked in the ecosystem of the Amazon Prime or through Pay ideal return for more purchases and increase the company’s revenue.
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