By now, the Indian e-commerce scene has grown enough to make it fair to assume anyone reading this has bought something online. Maybe you bought a dress on Myntra, or a mobile using some of the discount that. India is one of the fastest growing e-commerce market in the world and may well overtake some developed nations as a major e-commerce power.
Since the country’s online buying is still growing, it holds too much potential for all the players involved. Also the fact that there is no clear winner so far, makes it anyone’s game to win. This has attracted international giants like Amazon to pump in billions of dollars in investment to capture part of the e&m-commerce pie. The most recent one to join the multi-billion dollar bandwagon is none other than Alibaba, who also happens to be an investor in Snapdeal and Paytm.
Needless to say, the Indian e-commerce battle is an extremely fierce one with everyone fighting for the top spot. The entry of the world’s largest e-commerce company will only make things much more interesting. It is worth noting that Alibaba is the world’s most formidable e-commerce conglomerate and at over 300 million customers, it dwarfs international biggies including Amazon and eBay. Alibaba has been very bullish about India and it is not likely to hold back from investing billions of dollars in the country to build its audience.
The e-copmmerce surge has been for the most part, fuelled by aggressive discounts and low prices. Companies like Flipkart and Snapdeal have been looking to get some of the much sought-after profitability now that an important chunk of the targeted e-commerce audience are now comfortable shopping online. However, with Alibaba joining the party, these players will have to drop their profitability idea and compete on price. It remains to be seen how it deals with Snapdeal and Paytm in which it has a considerable investment.
The Counterfeit Problem
While the entry of Alibaba may seem like very good news for the Indian consumer, chances are it may turn out to be the opposite. In china, Alibaba has been trying toproducts for too long and has not been successful. Alibaba’s quality checks have not been up to international standards and it isn’t likely to be different in India. This might put Indian consumers at the risk of purchasing fake goods at lower prices. And the fact that other genuine product selling companies will suffer from this unfair advantage only makes things worse. However, the chinese company may not taste the success it yearns for in the country without positive word of mouth.