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Amazon plans Next Step to Grow in the Indian Market

Amazon, ecommerce giant expect6s the growth of their business in groceries and household items to account for half of their business in India as they also plan to extent the business and get in to various segments and also help the local businesses such as fresh produce in India which is a developing economy and people are moving towards development digitally. Along with that there is a growth in employment opportunities and people have a good disposable income which is leading to the growth of ecommerce market in the country. As stated by  the India head of Amazon, Amit Agarwal, in an interview, that’s they where largest category on amazon for various products such as the soaps, creams, cleaning products in terms of the number of units that are been sold in India on everyday basis. Agarwal said that he would not state when they are planning to launch Amazonfresh, but estimated a rough idea of a five year vision project which will offer various items like avocados to your potatoes, and your meat to your ice cream – we`ll deliver everything to you in two hours as stated by him.

AmazonFresh is the company which was launched in the US market about a ten year ago is the Amazon`s flagship fresh grocery delivery service which will include the fresh fruits and vegetables, meat, freshly basked products, ice creams and many other things which the people will receive just in 2 hours after placing an order with Amazon fresh. Currently, Amazon delivers groceries in India but with a different service named as ‘Pantry’. AmazonFresh has tied up with the local vendors of a particular region and hence they plan to deliver it in less than 2 hours of the order time as promised by the company. The company has a vision of growing this business with such a rate that it will be more than half of their business in India.

Amazon has already started experimenting with a free local vendors in India with  few fresh groceries, already home to its largest active customer base outside of the United States.

According to the study reports by Morgan Stanley, India`s e-commerce market is expected to grow to $200 billion in a decade of time as online shopping requires a smartphone and a cheap mobile data plan which makes it easily accessible to anyone and everyone all over the country. The availability of internet all over the country and smartphone penetration has been proving to be a boon for the ecommerce market. Amazon already has over a 100 million registered users in India which can be a good base for the AmazonFresh business and hence decided to cash in on the opportunity. Agarwal says that Amazon is focused to woo the customers with their service, product exchange and staggered payment offerings and hence plan to grow another 100 million  subscribers in India, shopping with Amazon.

Agarwal admits that even after gaining a huge customer base and trust, profitability is a few years away in India, as logistics, payments and other infrastructure needed to address the long-term opportunity in the market are still being built which requires huge investments and patience.