logo
  Join        Login             Stock Quote

Is Amazon Expanding To India? Should Retailers Follow?

 February 10, 2012 12:20 PM
 


Amazon-india
Whilst Amazon are yet to confirm rumours of an expansion into India, history tells us that as or when they do, they will execute well. There is undoubtedly an interesting picture now evolving around emerging ecommerce markets such as India, where a combination of population, more affluent middle classes, increasing penetration rates and growth of mobile make for an interesting mix.


Set against a background of faltering domestic GDP and pressure to grow revenues, there can be a tendency to view emerging markets as an immediate, untapped opportunity. In reality, the devil (as always) is in the detail and UK brands and retailers should not be tempted to confuse population with opportunity. As with any cross border venture, consideration should be given to local elements that prevail, such as languages, currency, customer expectation, local payment methods (cash on delivery still widely used in India), duty, returns policy and mechanisms, prevailing fraud rates etc. Even cultural acceptance of distance selling should be factored in.

As the objective is to maintain a profitable channel, manage risk and protect brand integrity, entry strategy to any new geography should therefore be considered carefully and partnerships that solve this complexity are key. 

Where markets are more definable in terms of maturity, volume, expectations and risk, (e.g. FR, DE) the value is clear and can be fairly accurately forecasted. Marketplace as a channel can negate the high set-up costs associated with launching a local webstore. For more established businesses that already have a localised webstore, Marketplaces allow a fast track into traffic that has intent to purchase, leverages the long tail and complements the existing presence. 

In emerging markets, marketplaces may be utilised slightly differently, offering a means to allow brands and retailers to probe, establish traction levels and make data driven decisions to shape their localised commerce strategy. Utilising marketplace as a means to expose full or subsets of inventory to additional geographies, can generally represent a lower risk method of growing cross border business. 

Seamus Whittingham, MD EMEAOne thing is for sure, emerging markets are not a case of one size fits all and it shouldn't be regarded as an online equivalent of a gold rush. Relevance as always is key as emerging markets represent opportunity for a cross section of UK brands and retailers. For others it is definitely a case of keeping a watching brief, as the global ecommerce market continues to evolve.

[Related -Netflix, Inc. (NASDAQ:NFLX): Can Netflix Trump Amazon.com, Inc. With New Plans?]

[Related -Level Watching and Swing Trade Planning for Amazon (AMZN)]

 

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageIntegrated Device Technology Inc. (IDTI) Q1 Earnings Preview: Another Beat and Pop?

Integrated Device Technology Inc. (NASDAQ:IDTI) will issue first quarter 2015 financial results on July 28, read on...

article imageHerbalife Ltd. (NYSE:HLF) Q2 Earnings Preview: The Potential To Shock?

Herbalife Ltd. (NYSE:HLF) will release its second quarter 2014 financial results after the close of trading read on...

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.