Have you heard the names Flipkart,
Amazon, Alibaba?
If you watch television or an internet
surfer, you must have noticed these names for sure. One billion dollar is a big
chunk of money and the big E-commerce giants are valued above $100 billion
plus. Alibaba
valued at $150 billion plus based on the recent successful IPO.
I can't say whether the valuation are at discount or substantial premium, but 10 out of 100 houses in my housing society buying online these days. Why not, it's twenty to thirty percent cheaper, and that is the real benefit of B2C model of business. There is a fierce competition among e-retailers and Amazon's entry into India has made it more visible. There is no doubt that there will be a flush of online websites offering products, but few will only make to the top. Some will be merged, some will be thrown out of competition, and eventually only few winners. The fact is that this e-commerce is for real, and here to stay. Increasing internet share and access to smartphones are the two big catalysts. Now, this opens up plethora of opportunities for the areas like e-commerce web sites, mobile apps, payment platforms and logistics companies. You need all at the same time to make the e-retailing a successful and memorable experience. For example, two logistics companies DTDC and Bluedart are clear beneficiaries of the booming e-commerce in India.
Days back, there was a news article in times of India that there are two hundred start-ups trying to catch online retail market share with people experimenting with specialized versions catering only vegetables, furniture, lingerie, lens etc. etc. It's adding to employment, but I am not very sure what the net addition is. Online means loss of job at conventional methods.
The only argument I have as of now is that specialised areas like furniture, grocery still sells at stores in Singapore, US or any other developed nation where the internet penetration is quite high (or it's not a number they tracking these days). This tells us something, and my worry is that most of these specialised retailers will meet a sad end. The boom is for real, and do note that this in addition to travel, pizza huts or dominos. In the end, only few will have the last laugh.
I can't say whether the valuation are at discount or substantial premium, but 10 out of 100 houses in my housing society buying online these days. Why not, it's twenty to thirty percent cheaper, and that is the real benefit of B2C model of business. There is a fierce competition among e-retailers and Amazon's entry into India has made it more visible. There is no doubt that there will be a flush of online websites offering products, but few will only make to the top. Some will be merged, some will be thrown out of competition, and eventually only few winners. The fact is that this e-commerce is for real, and here to stay. Increasing internet share and access to smartphones are the two big catalysts. Now, this opens up plethora of opportunities for the areas like e-commerce web sites, mobile apps, payment platforms and logistics companies. You need all at the same time to make the e-retailing a successful and memorable experience. For example, two logistics companies DTDC and Bluedart are clear beneficiaries of the booming e-commerce in India.
Days back, there was a news article in times of India that there are two hundred start-ups trying to catch online retail market share with people experimenting with specialized versions catering only vegetables, furniture, lingerie, lens etc. etc. It's adding to employment, but I am not very sure what the net addition is. Online means loss of job at conventional methods.
The only argument I have as of now is that specialised areas like furniture, grocery still sells at stores in Singapore, US or any other developed nation where the internet penetration is quite high (or it's not a number they tracking these days). This tells us something, and my worry is that most of these specialised retailers will meet a sad end. The boom is for real, and do note that this in addition to travel, pizza huts or dominos. In the end, only few will have the last laugh.
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