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<ul><li>The committee will work towards coordination across Ministries regarding e-commerce. </li><li>The draft e-commerce policy had also spoken about ensuring “harmonious” work across ministries. </li><li>Meanwhile, industry leaders have until June 27 to express their concerns about the policy. </li></ul>Global e-commerce giants like <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword>, which owns India-born <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>,have been vying for a less choppy ride in India. The draft e-commerce policy from the Narendra Modi government has given executives from these companies sleepless nights. But in a move that may keep hope alive, the Indian government is trying to ease the function of e-commerce in the country. It has formed formed a standing Group of Secretaries under Ramesh Abhishek, the secretary for Department for Promotion of Industry and Internal Trade (DPIIT). This committee will ensure inter-ministerial/inter-departmental coordination on resolving issues, cutting across Ministries and departments, regarding e-commerce in India, according to an official release. After the draft e-commerce policy had been announced, Indian industry had voiced their concerns regarding the same. While foreign players not being allowed to take on multi-brand retail, domestic players do not have to comply to such regulations. Indian players like <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword> had also mentioned that the policy ignores inventory-based e-commerce players. Founders of Snapdeal, Shopclues were even reported to have come together to set up a lobby for Indian e-commerce which would give the government its inputs on the policy. However, it is not clear whether this panel of bureaucrats will address the exact issues raised by the industry. Meanwhile, Indian e-commerce players have until June 27 to submit their concerns on the draft e-commerce policy. The Indian e-commerce market targeting consumers is estimated to reach $200 billion by 2026, whereas the enterprise e-commerce is expected to hit a whopping $300 billion. As of now, the country’s e-commerce industry is a mere 3% of the global market in size.

A new government panel is looking at making e-commerce easier in India-- but it may be too soon to cheer for Amazon and Walmart

<ul><li>Flipkart is planning an IPO in the US by 2022. </li><li>Co-founder <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword> has also sold a part of his stake in the company for $76.4 million.</li><li>Reports have been doing the rounds about <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> planning an exit from its biggest investment, because of India’s new e-commerce rules making the market complicated.</li></ul>Within a year of Walmart acquiring Flipkart, the global giant might exit it as Indian e-commerce player plans to raise money in the US markets. Flipkart<a href="https://economictimes.indiatimes.com/markets/ipos/fpos/flipkart-charts-roadmap-for-us-listing-by-2022/articleshow/69920934.cms"> is reportedly </a>heading for Initial Public Offer (IPO) in 2022 in the US, and this might mark the exit of its largest investor, Walmart. According to the ET report, Flipkart CEO Kalyan Krishnamurthy has already told his senior management to get ready for an IPO, and also aim at achieving profitability. Cashing out But it doesn’t stop there. Flipkart co-founder Binny Bansal, who had exited from all operational roles in the company over allegations of personal misconduct, has also sold a part of his shares for $76.4 million, according to filings sourced by paper.vc. Now, Bansal has a residual share of 3.52% in the company, down from 3.85%. Paper.vc also reported that Bansal had cashed out $159 million during the sale of Flipkart. Walmart had then acquired 77% stake in Flipkart for $16 billion. Reports have long been doing the rounds about Walmart planning an exit from the Indian retail company. While Flipkart’s latest revenue reports are not in, the company reported a loss of ₹11.6 billion in March 2018. <a href="https://yourstory.com/2019/06/ecommerce-walmart-funding-flipkart">Walmart</a> was also considering to pump in $1.2 billion more to fund Flipkart’s operations. Earlier in February 2019, Morgan Stanley also warned Walmart about its plans for the India market – the Indian e-commerce market was becoming “more complicated.” This report from Morgan Stanley had come after India’s new e-commerce rules which introduced tighter guidelines. As per the new rules, global players like Amazon or the Walmart-Flipkart entity, are barred from selling products from vendors they have own a stake in. Meanwhile, an Indian player which would be exempt from these rules is – Mukesh Ambani owned Jio along with <a href="https://www.livemint.com/companies/news/reliance-retail-testing-grocery-app-before-launch-of-e-commerce-platform-1556042589629.html">Reliance Retail</a>. It is planning its e-commerce debut which could also threaten the market share of the current players. See Also: <a href="https://www.businessinsider.in/govt-panel-on-new-e-commerce-rules-for-amazon-walmart-flipkart-and-snapdeal/articleshow/69892213.cms">A new government panel is looking at making e-commerce easier in India-- but it may be too soon to cheer for Amazon and Walmart</a>

Flipkart’s IPO in the US could see Walmart exit, Binny Bansal has already begun cashing himself out

<ul><li>The Indian e-commerce industry is grow to $200 billion by 2026.</li><li>The National e-commerce policy earlier had a deadline of being introduced by the end of 2019.</li><li>A recently released consumer protection draft is waiting for comments from leaders.</li><li>The draft e-commerce policy spelt trouble for <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword>.</li></ul>Indian e-commerce is growing at a fast rate as it moves to reach out to Bharat – the next 200 million internet users in the country. But not all is completely well with this industry which is expected to grow to $200 billion by 2026. From deep discounting to FDI in e-commerce to data protection, there are several concerns that the industry and its consumers have to deal with. Yet, considering the speedy growth of the industry, the Indian government is all set to regulate the sector. It is planning to bring about a National e-commerce policy. A draft policy was introduced in February and recently yet another draft on consumer protection in e-commerce also came in. The government is engaging with industry leaders to include their thoughts in the final policy. The draft e-commerce policy itself opened debate as Walmart-owned Flipkart, Amazon came directly under the government’s line of fire. The draft has not yet been converted into a bill and hence will not be tabled at the winter session of the parliament. However, there could be an overlap with the data protection bill that is a part of the session. The National e-commerce policy was supposed to be introduced by the end of 2019. A recently released consumer protection draft is waiting for comments from leaders The government on November 11 released a draft consumer protection in e-commerce rules. It has been opened up to the public so that e-commerce industry leaders can give their comments on it by December 2, 2019. The draft once again emphasised that e-commerce players cannot directly or indirectly influence the price of the goods or services and must maintain a level playing field. They also cannot falsely represent themselves as consumers or post reviews on their behalf. It also says that every e-commerce player will have to “publish on its website the name of the Grievance Officer and his contact details as well as mechanism by which users can notify their complaints about products and services availed through their web site”. The draft e-commerce policy spelt trouble for Flipkart, Amazon Introduced in February 2019, the draft policy had already gone through multiple rounds of deliberations. While homegrown players like Snapdeal, Paytm Mall have more or less found a safe place in the policy, Flipkart, Amazon and Chinese retailers like Club Factory, Shein are in a tough spot. As the draft, FDI in e-commerce will only be allowed for the marketplace model and not for inventory-based selling. This means that Flipkart and Amazon, will not be allowed to own or sell through any of their entities. Through several meetings over the year, the government has made its intentions clear. In a recent closed door meeting with industry players, Commerce and Industry Minister Piyush Goyal also told Amazon and Flipkart that they must ensure compliance with new foreign investment rules and steer clear of deep discounting. Chinese retailers too will find it difficult to function without having an Indian entity. The policy says that all product shipments from other countries to India must be channelized through customs.. One of the major problems in the e-commerce sector, deep discounting or predatory pricing will be looked into as well. Anti-counterfeiting measures will be taken to curb the growing menace of fake products. Another important point of the policy is the government's insistence that all local data should be stored in India.

India’s e-commerce policy is still in the works – with Flipkart, Amazon on tenterhooks

<ul><li>Indian e-commerce leaders recently had a meeting with the Commerce and Industry Minister <keyword id="6355222" type="PERSON" weightage="20" keywordseo="piyush-goyal">Piyush Goyal</keyword>. </li><li>During the meeting, Goyal told the likes of <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and Flipkart to comply to rules in India. </li><li>Goyal, who was very well prepared for the meeting, had multiple follow up questions for comments made by e-commerce leaders, according to a source.</li></ul>In a closed door meeting with Indian e-commerce leaders held recently, Commerce and Industry minister Piyush Goyal was at his candid best with representatives from Amazon and Flipkart. Goyal not only took a crack at the American multinationals for whining to their home government, he also warned them in no uncertain terms that regulations will catch up if the companies ever tried to side step, a source privy to the discussion told Business Insider. While companies expressed their concerns regarding the uncertainties in the Indian e-commerce space, participants in the meeting were quite impressed by Goyal’s interest and knowledge of the sector. “The minister was very well briefed and had counter questions on most topics for the e-commerce players present in the room,” said the source. India’s new e-commerce rules had introduced tighter guidelines that barred global players like Amazon and the Walmart-owned Flipkart from selling products from vendor companies where they own a stake. During this meeting, Goyal also told Amazon and Walmart's Flipkart that they must ensure compliance with new foreign investment rules and also steer clear of deep discounts on their platforms, according to a <a href="https://in.reuters.com/article/india-ecommerce/rpt-india-warns-foreign-e-commerce-firms-like-amazon-flipkart-over-discounts-sources-idINL4N23X149">Reuters report</a>. Flipkart had recently run into trouble when Indian startup GoQii had accused the Walmart-owned company for running deep discounts on the latter’s products. The report which quoted three sources present in the meeting also said that the government was committed to protecting small traders in India from “predatory behaviour by foreign-funded companies”. In summary, the Indian government has made its priorities clear to the companies and asked them to fall in line.

India's new industry minister is savvy and wary of Amazon and Walmart-owned Flipkart

<ul><li>Competition heats up after <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> closes its $16 billion acquisition of <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li><li>Alibaba and <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> are said to be eyeing large investments of their own.</li><li>Conventional retail and <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> players are coming together for a hybrid online-offline business model.</li></ul>A turf war is about to break out among Walmart, Amazon Inc. and <keyword id="163405" type="COMPANY" weightage="20" keywordseo="Alibaba-Group">Alibaba Group</keyword> as the retail giants make aggressive moves to expand into <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>. And it is highly likely that this will lead to a massive shakeup of the Indian retail space. Last week, Walmart said it had <a href="https://www.businessinsider.in/indias-competition-regulator-has-given-the-walmart-flipkart-deal-a-greenlight/articleshow/65337242.cms">closed</a> the $16 billion (₹1,118 billion) deal to buy the majority (77%) of Flipkart, India’s largest e-commerce company, following regulatory approval. This is Walmart’s biggest acquisition till date. In its aftermath, Alibaba and Amazon are said to be eyeing large investments of their own, according to media reports. Alibaba is said to be <a href="https://www.livemint.com/Companies/1mvbhDUjZd9khrSUroW5MM/Alibaba-may-invest-5-billion-in-JV-with-Reliance-Retail.html">considering</a> a $5 billion (₹350 billion) investment into a joint venture with <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>, India’s largest retailer in terms of sales, in part to take on competition from Amazon and Flipkart. While Amazon, along with co-investors, is mulling an investment in the Aditya Birla Group-owned grocery chain, More, for an enterprise valuation between ₹45 billion and ₹50 billion. Alibaba has reportedly also held talks with other Indian retail chains including Future Retail. In the past few years, Amazon has pumped in over $5 billion into India, its fastest growing market. Amazon and Walmart have been in fierce competition in their home market, the US, for quite some time, while Alibaba and Amazon are head-to-head in China. Some fear that Walmart’s push into India could potentially have an adverse impact on the larger Indian retail space in the long term, particularly on the small brick and mortar retailers in the country. A nation-wide trade lobby group plans to protest the Flipkart acquisition by going on a nationwide strike in the coming months. Currently, over 95% of India’s consumer retail market remains unorganised, representing a huge untapped opportunity for organised retail chains. India has long restricted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> in multi-brand retail to protect local grocers but allows 100% foreign direct investment in e-commerce companies that use the “marketplace” model. It is currently considering bringing in regulation for the e-commerce space and according to a recent draft proposal, may allow 49% foreign investment in e-commerce companies that use the inventory model. Walmart in its recent statement said its future investments into India will be directed at supporting farmers, supply chain development and reducing food waste. Strategy shift: Going hybrid Walmart’s acquisition of Flipkart and Amazon’s interest in More are the latest examples of large retailers adopting a hybrid business model of offline and online after years of experts predicting the disruption of traditional retail by e-commerce companies. Alibaba and Amazon have recently been focusing heavily on offline and online in their home markets – Amazon with its acquisition of grocery chain Whole Foods and Alibaba’s ‘New Retail’ strategy, which combines e-commerce and conventional retail in China. That rationale appears to be flowing down into their India strategy as well, points out Mrigank Gutgutia, engagement manager with RedSeer Management Consulting. Amazon also owns a 5% stake in Indian brick and mortar retail chain Shoppers Stop. While the Walmart-Flipkart deal is certainly encouraging for e-commerce players, even after 10 years and 100 million shoppers, Indian e-tailers have thus far managed to penetrate only about 2.7% of the overall Indian retail market, indicating the pressure to diversify their reach, notes Gutgutia. “While e-tailers have got their growth mojo back, everyone is starting to realise that pure online models will only let them capture limited pie,” said Gutgutia. “There is a need for change,” he added. Overall, as Indian e-commerce market matures further, e-tailers are realising that pure discount-driven models are no longer going to work. “What is needed is genuine innovation to cater to specific traits and needs of Indian buyers -- especially in offline-heavy categories like fashion and grocery,” said Gutgutia. According to RedSeer, this multi-channel approach will become dominant among organised retail players in the coming years, particularly for e-commerce players. Other e-tailers who have ventured into offline include furniture retailer Pepperfry with its studios and fashion retailer Myntra's Roadster stores. Regardless of how the investment landscape pans out and who buys whom, and as competition gets more intense for existing e-commerce and offline retailers, ultimately shoppers and customers are expected to win. As for small retailers, Gutgutia says they could see a positive impact if they work on a partnership model with organised retailers.

Clash of the titans: Amazon, Walmart and Alibaba to battle it out in India

<ul><li>A Redseer report says that e-commerce companies have hit a gross merchandise value or GMV of $1.8 billion in the first 3 days of their festive sales. </li><li>The Big Billion Days, Great Indian Festival sale, Snap-Diwali and others provide multiple offers and deals to consumers. </li><li>The e-commerce sector will now meet 80-100% of the forecasted target of $3.7 billion GMV from the sale time alone. </li></ul>It’s truly a festive season for Indian e-commerce players. A Redseer report says that e-retailers hit a gross merchandise value or GMV of $1.8 in the first 3 days of their sales. From Flipkart to Amazon to Snapdeal, every Indian e-commerce player is currently hosting their annual sales. The Big Billion Days, Great Indian Festival sale, Snap-Diwali and others provide multiple offers and deals across products to consumers. Redseer report further says that the e-commerce sector will meet 80-100% of the forecasted target of $3.7 billion GMV from their sales alone. “The first three days have been a strong success for e-tailers despite challenging macro environment, indicating that consumer sentiment on online shopping remains bullish. We expect the industry to continue to do well in the remaining days of the sales event and achieve 80-100% of the RedSeer forecasted numbers for the whole 6-day event,” said Anil Kumar, Founder and CEO, RedSeer Consulting. The mobile segment has led the sales, with 55% GMV coming from smartphones. Amazon said that OnePlus, Samsung and Apple crossed ₹750 crore in sales within 36 hours of the sale. In fact, OnePlus clocked in a record ₹500 crore revenue on the second day of Amazon Great Indian Festival. “We’re honoured by the overwhelming response received as this stands testament to the highest level of customer satisfaction and the strong trust in our brand. India is one of our most important markets and we will strive to ensure an unparalleled, superior experience for our users,”said Vikas Agarwal, General Manager, OnePlus India. This is gloom of an economic slowdown which has impacted the <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-and-amazon-sales-beat-slowdown-blues-to-lift-consumer-sentiment/articleshow/71384852.cms">consumer sentiment</a>. But the online sales seem to have altered it. Both Flipkart and Amazon managed to open up new markets as well. As much as 91% of Amazon’s new customers came from Tier 2 and 3 towns.Flipkart said that its number of transacting customers from Tier 2 and beyond doubled over last year’s sale on the first day.

Amazon, Flipkart, Snapdeal and others clock in $1.8 bn in revenue within 3 days of festive sales

<ul><li>The draft of the <keyword id="3557940" type="PERSON" weightage="20" keywordseo="e-commerce-policy">E-commerce Policy</keyword> for <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> prioritises domestic businesses over foreign firms. </li><li>Raising their concerns, <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> have reached out to the <keyword id="6354862" type="UNKNOWN" weightage="20" keywordseo="trump">Trump</keyword> administration to moderate with Indian policymakers. </li><li>Their key issues seem to be the ban of foreign investment in the inventory model of business and the barring of bulk purchases.</li></ul>After rolling out the first ever draft of the Personal Data Protection Bill, the Indian government has taken another step forward by pushing out the draft E-commerce Policy. But, just as there was dissatisfaction on many fronts with the former, the latter hasn’t been too well received either. This is <a href="https://economictimes.indiatimes.com/industry/services/retail/amazon-walmart-may-seek-us-help-on-ecommerce-policy/articleshow/65221086.cms">especially true</a> for foreign firms. In forming a shield over the domestic industry, American e-commerce giants like Walmart and Amazon feel as though they’ve been handed the short end of the stick. They’ve even gone so far as to ask for American policy intervention in the matter in case the final version of the policy isn’t moderated to more preferable terms. Aside from giving domestic entities an advantage, foreign firms are also concerned that once this policy kicks in, business operations will be hampered by the new regulations as it intervenes in day-to-day operations and decision making. <div type="image" title="ecommercepolicy" msid="65228629" hostid="261"></div>

 Bones of contention The primary aim of the E-commerce Policy is to streamline India’s full throttle digital economy and e-commerce businesses. And thus, the draft policy puts India’s interests first and makes no secret of it. From barring lobbying so that e-commerce players can’t ‘directly or indirectly’ influence the price to a localised inventory model, the recommendations of the Suresh Prabhu-led think tank favour domestic business. The main concern for foreign executives seems to be that India is going the ‘Chinese way’. The recommendations stipulate 100% foreign direct investment (FDI) in the marketplace model of retail but no foreign investment in the inventory based model. This basically means that a foreign e-retail platform can only be the conduit between vendors and consumers, but not hold any of the inventory itself. And, on top of that, a single vendor can’t be responsible for more than 25% of the sales on one platform. Another point of dispute is the recommendation says that bulk purchases from ‘related party sellers’ should be restricted because, in the case of branded and white goods, it leads to price distortions in the market. While this may be true, it will be a huge obstacle for <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> and Amazon, and their sales strategies. Meanwhile, according to government officials, the aim is to support the Indian e-commerce players without violating the paradigms that are set forth by international trade agreements. While it’s understandable that American businesses looking to invest in India are upset over recent developments, reigning in the Trump administration to stand up against the Indian government protecting the domestic economy seems a little ironic. The US, itself, is <a href="https://www.businessinsider.in/Trumps-all-out-trade-war-is-rattling-Washington-even-his-strongest-allies/articleshow/64407324.cms">raising tariffs</a> to boost its own industries and protect them from foreign competition.

Amazon, Walmart seek US help against India’s new draft E-commerce Policy

<keyword id="1489410" type="UNKNOWN" weightage="100" keywordseo="e-commerce-in-India">E-commerce in India</keyword> is once again grabbing the headlines and this time, for all the right reasons. Bangalore-based <keyword id="319719" type="COMPANY" weightage="100" keywordseo="Myntra">Myntra</keyword>, arguably India’s largest standalone <keyword id="1127700" type="UNKNOWN" weightage="100" keywordseo="fashion-e-tailer">fashion e-tailer</keyword>, has recently closed a <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword> round worth $50 million from an investor consortium led by <keyword id="1430452" type="ORGANIZATION" weightage="100" keywordseo="PremjiInvest">PremjiInvest</keyword>, the family office of the <keyword id="10862" type="CITY" weightage="60" keywordseo="Wipro">Wipro</keyword> chairman <keyword id="6419840" type="PERSON" weightage="80" keywordseo="Azim-Premji">Azim Premji</keyword>. Myntra is also in talks with a clutch of investors to raise an additional $40 million at a higher <keyword id="51393" type="UNKNOWN" weightage="100" keywordseo="valuation">valuation</keyword>, according to an Economic Times report. So far, the <keyword id="2049121" type="UNKNOWN" weightage="100" keywordseo="E-commerce-firm">e-commerce firm</keyword> has raised $125 million in risk capital funding. Another fashion e-tailer that is also raising <keyword id="57924" type="ENTERTAINMENT" weightage="100" keywordseo="big-money">big money</keyword> is Gurgaon-based <keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword>.com, which is backed by Berlin-based <keyword id="1965711" type="COMPANY" weightage="80" keywordseo="Rocket-Internet-GmbH">Rocket Internet GmbH</keyword> – a venture arm of the Samwer brothers. The e-commerce firm is reportedly raising a fresh round of equity funding worth $100 million, of which it has already received $27.5 million from the British <keyword id="2049123" type="ORGANIZATION" weightage="100" keywordseo="Development-finance-institution">development finance institution</keyword> <keyword id="1613067" type="UNKNOWN" weightage="100" keywordseo="CDC-Group-Plc">CDC Group Plc</keyword>. 
 All this is good news for the cash-strapped Indian e-commerce segment. So we have taken a close look at the recent fundraising by the <keyword id="2049116" type="UNKNOWN" weightage="100" keywordseo="Indian-e-commerce-players">Indian e-commerce players</keyword> and identified five key trends that seem to be prevailing. Will they rule the <keyword id="2049126" type="UNKNOWN" weightage="100" keywordseo="Fundraising-scenario">fundraising scenario</keyword> and determine the parameters of growth throughout 2014? Let us have a quick look. 
 
Growing big is the key priority E-commerce start-ups in India are finally coming of age and looking beyond the quickest possible exits. When Myntra closed $50 million in funding a couple of days ago, the company was immediately approached by its bigger rival <keyword id="6354742" type="COMPANY" weightage="60" keywordseo="Flipkart">Flipkart</keyword> who had reportedly come up with an acquisition offer worth $200 million. According to a TechCrunch report, e-commerce giant <keyword id="18635" type="CITY" weightage="80" keywordseo="Amazon">Amazon</keyword> had also approached Myntra but the details of the proposed deal are not yet available. 
 Although rumours were rife that Myntra could be considering either of the deals as part of a bigger strategy, the e-tailer has decided to stay off the <keyword id="1949341" type="UNKNOWN" weightage="100" keywordseo="Exit-route">exit route</keyword>. In fact, its ongoing talks for an additional round of funding worth $40 million clearly indicate that the company has in place some well-thought-out <keyword id="414633" type="UNKNOWN" weightage="100" keywordseo="growth-plans">growth plans</keyword> and big ones at that. The only other reason for back-to-back funding is to raise the valuation but at this point, Myntra doesn’t look like it is on the block. Neither has it decided to quit in a hurry like <keyword id="6359128" type="COMPANY" weightage="100" keywordseo="Redbus">redBus</keyword>.in did last year. <keyword id="2049136" type="UNKNOWN" weightage="100" keywordseo="Indias-largest-bus-ticketing-firm">India’s largest bus ticketing firm</keyword> was acquired by the <keyword id="1643008" type="UNKNOWN" weightage="100" keywordseo="Ibibo-Group">ibibo Group</keyword> for around $125 million but the sale cut short a successful <keyword id="530125" type="UNKNOWN" weightage="100" keywordseo="entrepreneurial-journey">entrepreneurial journey</keyword> that could have become a $500 million business in terms of revenue and could have achieved a $1 billion valuation. 
 As for Jabong, the very fact that it is backed by Rocket Internet may tell the industry insiders a different story. Rocket is known in the market for its fast and furious build-and-sell business module, and the start-ups are essentially replicas of successful US businesses. But the kind of funding Jabong is raising right now shows that the company is in no hurry to down the shutters in India even though two of its four co-founders have recently left the company. Jabong started its India operations in 2012 and competes with key e-com players such as Flipkart, Myntra, <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> and <keyword id="6354743" type="COMPANY" weightage="40" keywordseo="Amazon-India">Amazon India</keyword>, among others. 
 
Only <keyword id="2049143" type="UNKNOWN" weightage="100" keywordseo="Core-expertise">core expertise</keyword> matters Internet giant <keyword id="6355629" type="CITY" weightage="80" keywordseo="Google">Google</keyword> has already given us a case in point when it sold <keyword id="487941" type="ORGANIZATION" weightage="60" keywordseo="Motorola-Mobility">Motorola Mobility</keyword> to Lenovo for $2.91 billion, less than two years after paying $12.5 billion to acquire it. The deal is not a total financial loss as Google has managed to keep patents worth billions of dollars and expects to turn Lenovo into a manufacturing unit for its <keyword id="6355645" type="COMPANY" weightage="40" keywordseo="android">Android</keyword> OS. But selling <keyword id="11148" type="CITY" weightage="40" keywordseo="Motorola">Motorola</keyword> is a sure indication that Google should have focused more on its <keyword id="1430489" type="UNKNOWN" weightage="100" keywordseo="Core-Competencies">core competencies</keyword> – search, software and selling ads – instead of developing hardware. 
 You will find a similar case here as Jabong has reportedly sold its <keyword id="2049146" type="UNKNOWN" weightage="100" keywordseo="logistics-arm">logistics arm</keyword> <keyword id="2049145" type="UNKNOWN" weightage="100" keywordseo="JaVAS">JaVAS</keyword> (Jabong Value Added Services) to Gurgaon-based QuickDel Logistics as part of its business restructuring and funding exercise. Jabong <keyword id="170488" type="POSITION" weightage="40" keywordseo="co-founder">co-founder</keyword> <keyword id="536011" type="PERSON" weightage="40" keywordseo="Praveen-Sinha">Praveen Sinha</keyword> has also confirmed to the media that JaVAS is now an independent entity. 
 However, that brings us back to the basic question. Should companies try and provide end-to-end solutions to ensure a complete customer experience or should they focus on core competencies and leave the rest to the experts in those fields? We particularly raise this question as many Indian e-commerce firms are currently focusing on <keyword id="2049154" type="UNKNOWN" weightage="100" keywordseo="Proprietary-payment-gateways">proprietary payment gateways</keyword> and customised logistics services in a bid to propel their services to the next level. However, such services can actually make you lose money unless a company is catering to a customer base as vast as <keyword id="6357395" type="CITY" weightage="40" keywordseo="eBay">eBay</keyword> or Amazon. 
 After JaVAS, the writing is definitely on the wall. The bells and whistles can always come in later, but the key focus must be core competencies. Of late, even <keyword id="6354427" type="CITY" weightage="80" keywordseo="Apple">Apple</keyword> seems to be falling in this trap – its newest hardware products have ‘n’ number of <keyword id="2049161" type="UNKNOWN" weightage="100" keywordseo="Incremental-features">incremental features</keyword> but real innovations seem to be eluding the iconic company. 
 
Investors showing better <keyword id="170907" type="UNKNOWN" weightage="100" keywordseo="risk-appetite">risk appetite</keyword> India’s e-commerce market is projected to grow sevenfold to $22 billion in the next five years, and investors, both national and global, want to have a piece of the pie. According to <keyword id="1981" type="PERSON" weightage="80" keywordseo="Rahul-Khanna">Rahul Khanna</keyword>, managing director of the <keyword id="6357097" type="COMPANY" weightage="100" keywordseo="venture-capital">venture capital</keyword> firm <keyword id="218905" type="COMPANY" weightage="80" keywordseo="Canaan-Partners">Canaan Partners</keyword> (India), e-commerce players in India (and everywhere else for that matter) require very deep pockets to scale up to the level of breaking even and hitting profitability. In this space, sales margins are typically low; volume is high, and logistics &amp; back office <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword> only become viable when companies are catering to a very <keyword id="2049169" type="UNKNOWN" weightage="100" keywordseo="Large-customer-base">large customer base</keyword>. Consequently, <keyword id="2049171" type="UNKNOWN" weightage="100" keywordseo="Follow-on-rounds">follow-on rounds</keyword> are extremely crucial for sustainable growth. Now that big institutional investors like PremjiInvest and UK-based development <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword> institution CDC Group are entering the arena, the much-needed <keyword id="2000080" type="UNKNOWN" weightage="100" keywordseo="Cash-burning">cash burning</keyword> is sure to propel growth to the desired level. 
 “E-commerce is fast maturing in India and that’s the main reason <keyword id="363248" type="ORGANIZATION" weightage="100" keywordseo="Global-Investments">global investments</keyword> are flowing in,” says another analyst. “When big players like Amazon show interest (the e-commerce giant has reportedly approached Myntra), investors are quick to sense the tremendous <keyword id="452394" type="UNKNOWN" weightage="100" keywordseo="growth-potential">growth potential</keyword> lying here,” she adds. 
 
Forget the buzz you are creating; it’s result time now Analysts, who have followed the course of events over the past few weeks, also point out another interesting trend. Be it Myntra or Jabong or other up-and-coming e-commerce businesses, it’s their <keyword id="2049173" type="UNKNOWN" weightage="100" keywordseo="Growth-quotient">growth quotient</keyword> that has attracted <keyword id="2049174" type="UNKNOWN" weightage="100" keywordseo="Big-funding">big funding</keyword>. In other words, start-ups who are delivering in a big way will get the valuable <keyword id="2049175" type="UNKNOWN" weightage="100" keywordseo="Growth-dollars">growth dollars</keyword> as investors are now looking beyond the buzz and focusing on <keyword id="1730239" type="UNKNOWN" weightage="100" keywordseo="business-fundamentals">business fundamentals</keyword> and results. 
 Companies must have the numbers – in terms of customer base, <keyword id="169826" type="UNKNOWN" weightage="100" keywordseo="growth-figures">growth figures</keyword> and brand leadership – to justify the big money they are raising. For instance, Myntra expects to more than double its <keyword id="657194" type="UNKNOWN" weightage="100" keywordseo="gross-sales">gross sales</keyword> to over $250 million by March 2015 and the fashion e-tailer’s <keyword id="2049176" type="UNKNOWN" weightage="100" keywordseo="Monthly-gross-sales">monthly gross sales</keyword> could touch $20-25 million by April this year. Myntra is expected to end the current fiscal with more than $100 million in gross sales and it is targeting $1 billion in <keyword id="6399113" type="ORGANIZATION" weightage="100" keywordseo="GMV">GMV</keyword> by 2016-2017. Flipkart, which raised $360 million last year at a valuation of about $1.6 billion, is also projecting a GMV of $1 billion by 2015. 
 Jabong, too, has aggressive growth plans and the latest round will be used to strengthen its <keyword id="2049177" type="UNKNOWN" weightage="100" keywordseo="Supply-chain-infrastructure">supply chain infrastructure</keyword> and enhance its <keyword id="2049178" type="UNKNOWN" weightage="100" keywordseo="Technology-platform">technology platform</keyword>. According to industry sources, Jabong might have generated <keyword id="2049180" type="UNKNOWN" weightage="100" keywordseo="Gross-merchandise-sales">gross merchandise sales</keyword> of $100-150 million for the fiscal 2012-13. Other key investments in the Indian e-commerce space since 2013 included online marketplace Snapdeal raising about Rs 300 crore and baby care portal <keyword id="1615917" type="COMPANY" weightage="80" keywordseo="FirstCry">Firstcry</keyword> bagging Rs 92 crore. 
 
Inventory, <keyword id="6630005" type="UNKNOWN" weightage="100" keywordseo="private-labels">private labels</keyword> are adding value 
With the lone exception of Snapdeal that runs a 100% marketplace, most of the big e-commerce entities in India are flourishing on a hybrid model – a strategic mix of inventory, private label and marketplace. In fact, Jabong has been doing all three for some time now, although a bit discreetly, and it could be now pushing hard to extract every penny from each of these categories. 
 
Myntra, on the other hand, focuses on both inventory and private label, with the share of private labels rising rapidly. A couple of years ago, the e-tailer acquired Exclusively.in Inc., the company behind the private label brand Shersingh.com and the fashion site Exclusively.in, in a cash-cum-equity deal. Myntra is reportedly eyeing more private labels to add to its portfolio as the margins are pretty high in this segment and add substantially to the profits. 
 
Bottom line: Is it a <keyword id="2049185" type="UNKNOWN" weightage="100" keywordseo="Volatile-situation">volatile situation</keyword>? In one of her latest blogs in <keyword id="6359301" type="POSITION" weightage="100" keywordseo="Entrepreneur">Entrepreneur</keyword>.com, entrepreneur-writer Erika Trautman has nicely summed it up. “No matter how great the idea, if your start-up doesn’t create hard and fast results with analytics, targeted business solutions and mobile integration, it won’t survive in 2014. Launching a start-up can’t just be about how cool your product is. No business can subsist off just buzz and Press. This year, start-ups must focus on business fundamentals and start emphasising partnerships that generate results.” 
 
Can the Indian e-commerce players innovate, scale up and deliver (as the takeaways so amply illustrate) to justify the trust investors are now putting in them? Will there be new ventures to take up the gauntlet? Let us wait and watch. 
 
Image: Thinkstock Photos/Getty Images

Indian E-com Players
Are Raising Big Money; These 5 Takeaways Can Help You Understand What’s
Changing

Competition in the <keyword id="436047" type="UNKNOWN" weightage="80" keywordseo="Ecommerce">eCommerce</keyword> space is getting hotter and hotter. E-tailers are trying their best to outdo the competition by offering discounts, organising flash sales, launching contests and more. However, another bigger trend that we are observing in the eCommerce industry is: ‘the <keyword id="235499" type="ORGANIZATION" weightage="80" keywordseo="APP">app</keyword>’ move. 
 
E-tailers are encouraging consumers to shop using their apps these days by offering extra discounts, freebies and more such things. Does this ring a bell? If you are an eCommerce shopper, then it defintely will. But did you ever think, why are eCommerce players making this move? 
 
Coz mobile data is on rise 
We feel that eCommerce players are making this move considering consumers’ Internet consumption patterns. A recent study by Indian mobile network points out that 75% of Indians own a mobile device as against 15% getting access to broadband Internet. In addition, there are also studies, which reveal that an Indian user spends an average 200 minutes a day on smartphones and user base for the same is expected to grow to 205 million by this year. And what else could be a better way to tap this consumer base other than ‘app’. 
 
 
e-tailers to kill their desktop sites? The way eCommerce players are going aggressive about apps, saying that their desktop sites would have an untimely death would be wrong—but the scene could change in the near future. The first visible signs for this are the stats which suggest that online fashion companies like <keyword id="319719" type="COMPANY" weightage="80" keywordseo="Myntra">Myntra</keyword> have 80% of traffic and 60% of sales coming from its <keyword id="6369871" type="UNKNOWN" weightage="80" keywordseo="Mobile-app">mobile app</keyword>. 
 
 
 
App: The next ‘in-thing’ in eCommerce 
 
As per analysts, the day isn’t far when 80-90% orders would start coming through app, the daily has reported. 
In Tier-II/ Tier-III cities, penetration of Internet is much less and people still rely on brick and mortar stores. In those areas, accessing to eCommerce through mobile is easier and convenient. 
 
A regular buyer through apps of various eCommerce companies, Sweta told BI, “It’s all about on the go! Since I’ve a fascination for shoes the entire stretch I travel in Delhi metro, I would browse shoes across all online stores. Whichever suits my pocket and choice, I just buy it instantly. Moreover, the mobile screen being smaller than web, the designing is more crisp and convenient.” 
 No wonder, to cheer up more buyers through mobile, eCommerce companies like Amazon and <keyword id="6354742" type="COMPANY" weightage="80" keywordseo="Flipkart">Flipkart</keyword> are offering extra discounts to buyers ordering through apps. Amazon’s ‘Appiness’ offer last year had increased its traffic through app by 4 times and more. 
 
Mausam Bhatt, senior director, marketing (mobile and digital marketing) of Flipkart had said "Over the past year we have been seeing that there is an increase in growth coming from our mobile app. A majority of this growth is coming from outside of metro cities. So, we are taking this opportunity to connect with our consumers better and grow the user base for our mobile app by having a shopping festival exclusively there.” 
 
(Image: Reuters)

Ecommerce trying the ‘App’ropriate move

<ul><li><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, the richest man in Asia, is launching his own e-commerce platform in the second most populous country in the world, India.</li><li>The launch of ‘local’ e-commerce platform could bring in fierce competition against foreign players like Amazon since it wouldn’t be subject to the same scrutiny. </li><li><keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>’s offline avatar already serves 3.5 million customers every week. </li><li>Ambani states that this is a move against ‘data colonisation’ — a way to migrate control and ownership of Indian data back to India.</li></ul>Mukesh Ambani, the <a href="https://www.businessinsider.in/meet-the-ambanis-the-richest-family-in-asia-who-live-in-a-1-billion-skyscraper-and-mingle-with-royals-politicians-and-bollywood-stars/articleshow/67150327.cms">richest man</a> in India and in Asia, is gearing up to go head-to-head with Amazon’s <keyword id="191583" type="PERSON" weightage="20" keywordseo="Jeff-Bezos">Jeff Bezos</keyword>, currently the richest man in the <a href="https://www.businessinsider.in/jeff-bezos-is-worth-over-100-billion-heres-how-the-worlds-richest-man-makes-and-spends-his-money/articleshow/67259003.cms">world</a>. Ambani is planning to launch his own e-commerce platform in India, starting with the western state of Gujarat. Currently, the Indian e-commerce space is pretty evenly split between Flipkart and <keyword id="6354743" type="COMPANY" weightage="20" keywordseo="Amazon-India">Amazon India</keyword>, each <a href="https://www.forbes.com/sites/johnkoetsier/2018/05/18/report-amazon-india-worth-16b-with-30-market-share-will-hit-70b-gmv-in-2027/#5c498dc46b95">having</a> 30% market share. But Ambani’s entry — the entry of a strong ‘local’ e-commerce player — could upset that balance as local vendors are trying to <a href="https://www.businessinsider.in/amazon-and-flipkart-are-off-the-hook-youll-still-be-able-to-buy-the-amazon-echo-and-marq-products-online/articleshow/67379751.cms">fight off</a> the incursion of foreign retailers. When Ambani launched his own network, Reliance Jio Infocomm, it only took the company two years to garner 20% of the market share. In comparison, Amazon has been in India for over five years now and managed to <a href="https://www.thehindubusinessline.com/info-tech/flipkart-captures-51-market-share-in-festive-sale-says-report/article25258134.ece">capture</a> 51% of the market share during the most recent festive season. But, at the end of the day, they are indeed different industries. Ambani’s retail plans The Indian government is already pulling out the red carpet from under the feet of foreign players with its new e-commerce policy. The policy <a href="https://www.businessinsider.in/the-indian-government-just-dealt-a-serious-surprise-to-amazon-and-flipkart-heres-what-that-means-for-online-shoppers/articleshow/67272151.cms">cuts them off</a> from offering deep discounts or selling their <a href="https://www.businessinsider.in/amazon-and-flipkart-are-off-the-hook-youll-still-be-able-to-buy-the-amazon-echo-and-marq-products-online/articleshow/67379751.cms">own products</a> — like MarQ or the Amazon Echo. Ambani, who controls a $43 billion fortune, won’t be subjected to the same terms and conditions as a ‘local’ player in India. His plans reportedly include building an ‘immersive shopping experience’ using next-gen technology with augmented reality (AR) to compete against Amazon and Walmart-owned, Flipkart. 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="ExtQuote" text="&quot;Today, we have to collectively launch a new movement against data colonisation. For India to succeed in this data-driven revolution, we will have to migrate the control and ownership of Indian data back to India - in other words, Indian wealth back to every Indian.&quot;" auname="Mukesh Ambani to Prime Minister Narendra Modi at the 9th Vibrant Gujarat Summit"></div>



























 Reliance Retail, in its offline avatar, has already shown exponential growth over the past five years. From 2017 to 2018, its annual revenue increase two-fold from ₹337.65 billion ($4.73 billion) to ₹691.08 billion ($9.68 billion). 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
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 Having been around since 2006, Reliance Retail serves over 3.5 million customers every week through its local shops, supermarkets and wholesale outlets that reach more than 6,500 Indian cities and towns. Once it goes live in Gujarat, it will be empowering the 1.2 million local shopkeepers in the state to sell their goods online. 
	
	
	
	
	
 
 
 
 
 
 
 <div type="image" title="jio-point-cuddalore-4uhq9" msid="67620168" hostid="261"></div>

























 The Jio network has a part to play as well since it has been the driving force behind bringing 250 million people in India online. But for corners of the country that don’t have internet, Ambani’s plan includes utilizing the 5,100 smaller Jio Point stores, that are spread across 5,00 cities, as ‘last-mile’ connectivity for its e-commerce platform. See also: <a href="https://www.businessinsider.in/the-indian-government-just-dealt-a-serious-surprise-to-amazon-and-flipkart-heres-what-that-means-for-online-shoppers/articleshow/67272151.cms">The Indian government just dealt a serious surprise to Amazon and Flipkart — Here’s what that means for online shoppers</a> <a href="https://www.businessinsider.in/amazon-and-flipkart-are-off-the-hook-youll-still-be-able-to-buy-the-amazon-echo-and-marq-products-online/articleshow/67379751.cms">Amazon and Flipkart are off the hook — You’ll still be able to buy the Amazon Echo and MarQ products online</a> <a href="https://www.businessinsider.in/meet-the-ambanis-the-richest-family-in-asia-who-live-in-a-1-billion-skyscraper-and-mingle-with-royals-politicians-and-bollywood-stars/articleshow/67150327.cms">Meet the Ambanis, the richest family in Asia, who live in a $1 billion skyscraper and mingle with royals, politicians, and Bollywood stars</a>

You Searched For "Indian e commerce players" and got 10 results

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Indian E-com Players Are Raising Big Money; These 5 Takeaways Can Help You Understand What’s Changing

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Ecommerce trying the ‘App’ropriate move

BI India Bureau

Amazon's newest challenger may be the richest man in Asia

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