Investment bank Barclays has presented a new report, which has shaken and stirred the Indian ecommerce industry.
As per the report, Amazon, world’s largest ecommerce portal has beaten Walmart-owned Flipkart, which was #1 ecommerce portal in the last 8 years.
Interestingly, gross revenues of Myntra-Jabing combined was not included in the final analysis, which gave Flipkart an upper hand. But this financial year, Amazon has surprised one and all.
Amazon Is Now #1 In India: Barclays
By considering the gross sales till the financial year ending March, 2018, Amazon India has been declared as #1 ecommerce player in India, defeating Flipkart which held this position till now.
While Amazon churned out gross sales of $7.5 billion till March, 2018, Flipkart managed $6.2 billion, thereby becoming the largest ecommerce portal in India.
The Tight Race Continues
During FY 2016, Amazon India reported gross sales of $2.4 billion, which was lower than Flipkart’s $3.7 billion sales.
During FY 2017, Amazon India reported gross sales of $4.1 billion, whereas Flipkart reported $4 billion. Hence, the difference was marginal.
However, in FY2018, Amazon India has pulled up a stunning performance, churning revenues of $7.5 billion, which is $3.4 billion more than last year.
All these estimates doesn’t count gross sales of Myntra and Jabong.
What Will Happen In FY2019?
As per the analysis by Barclays, Amazon India is expected to churn out sales of $11 billion, whereas Flipkart will be able to manage $9 billion of sale.
Hence, it is expected that Amazon will continue its lead over Flipkart next year as well.
Flipkart has reacted sporingly, as it said, “Flipkart remains an unquestioned leader and it has also been established by independent research houses which track the industry in India closely.”
Amazon has refused to comment.
Walmart won’t like this report.
Reasons For Amazon’s Lead Over Flipkart?
As per the report, growth rate of Amazon has been amazing, which is almost double of what Flipkart has achieved.
Amazon India is right now growing at a rate of 82%, whereas Flipkart is growing at 47%.
Flipkart’s advantage is its massive scale, which they will wan to capitalize. The report said, “Flipkart continues to be bigger than Amazon in terms of revenue ($3.8 billion vs $3.2 billion), although Amazon is catching up quickly and continues to grow much faster (82% vs 47%),”
Besides, Amazon’s Prime service is also growing fast, and they now have 7 million Prime users in India.
It would be interesting to observe how Flipkart reacts, and unleashes a new blueprint of success in India.
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