Case Study: The Rat Race To Become Detailer Giant In India

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The Rat Race to become etailer giant in India A month ago two news items captured the front page headlines. The first was on July 29 by Flipkart that it has raised fresh capital of $ 1 billion. And not even a day had gone by before global biggie Amazon Inc. announced that it would invest $2 billion into its India business. These events raised many interesting questions, one of them obviously being that of ‘The rat race’. The ecommerce industry is currently a regulatory quicksand and customer loyalty is a tough game. However, armed with bulging purse and tailored strategies the fight for the top slot has evolved into a three-way tussle: Global biggie Amazon Inc., with a $157 billion market cap, entered India last year and is the most deep-pocketed. Home bred Bangalore-based Flipkart, with its recent funding of $210 million from Russian firm DST Global Solutions, has now received nearly $780 million in funds since it started operations in 2007. It recently paid $300-330 million to acquire rival Myntra (India’s largest fashion etailer) to strengthen its position in the fashion segment. And the third, Snapdeal, which raised $100 million in May, mostly from investors such as Temasek Holdings, BlackRock Inc. and PremjiInvest. It had earlier got $134 million from eBay Inc and others. Amazon: Customer-Centric It has been 20 years…show more content…
They do not buy inventory. This model has two advantages: Buyers get access to a wide range of products and there are no inventory costs for Snapdeal. This is also the reason why the investor community pegs Snapdeal as the most likely of the ‘Big Three’ to be the first to make profits. “Wide selection” is what Snapdeal is betting big on. Its marketplace caters to over 5,000 cities and towns, offering more than 6,000 brands and has more than 40 lakh listed products across 500 categories. It has over 25 million members, about 30,000 sellers, and adds new products every 20

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