Flipkart and Amazon, the current bosses in the Indian e-commerce market will be shaken if the latest reports about tech giant Google turns out to be true. According to reports, Google is to enter the e-commerce market by Diwali. The market which is valued at around USD 38.5 billion and projected to grow to USD 64 billion by 2020, will see a new entrant this winter.
According to reports, the search engine giant was in talks to invest around 2 billion in Flipkart after Walmart’s USD 16-billion deal to buy 77 per cent in the firm. However according to the latest updates, now Google is trying to enter the Indian e-commerce space on its own.
Currently, Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US by 2034 to become the second largest e-commerce market in the world.
Earlier, the California-based firm announced an investment of USD 550 million in JD.com, a Chinese e-commerce company. The two company in a joint statement mentioned that it was a strategic partnership to develop market.
According to the latest reports by IBEF, the Indian e-commerce business will reach USD 200 billion by 2026. In the fast and competitive Indian e-commerce market, Google’s entry will be a big challenge for the current players given its enormous user base in India.
Google’s secret e-commerce plans for India are in works for almost one year. If reports are to be believed, then the whole project is headed by Caesar Sengupta, the vice president of Product Management at Google. Sengupta also leads the Next Billion Users initiative for the company, and is likely to test the e-commerce launch in the country before going to other markets.
Adrian Lee, research director, Gartner says, “With the massive user base, India looms as an attractive market for retailers. It’s currently estimated that 15 percent (200 million) Indian consumers will be shopping online by end of 2018, and the relatively untapped growth potential is attracting the commerce giants."
"Homegrown companies stand to benefit in the long run. As consumers are more attuned and comfortable to shopping online with e-commerce marketplaces, we see vertical specialists (largest categories being fashion, second electronics) benefiting. High value, more discerning consumers who want differentiated choices and unique offers will seek out specialists to fulfill this need,” he adds.