Retail superpower Amazon.com, Inc. (NASDAQ:AMZN) is rapidly growing its footprint in the Indian retail market, and this year’s busy Diwali shopping season could punctuate its takeover of e-commerce in the country.
Amazon’s growth in India has been nothing short of spectacular. Analysts believe it has already become the #2 e-commerce company in the nation after just three years in business there, and now it’s aiming for #1 amid India’s busiest shopping season. From Bloomberg:
Known as the “festival of lights,” the run-up to the celebration is India’s biggest retail event, when consumers buy everything from clothes and electronics to jewelry and cars. Indians will spend as much as $1.7 billion online during Diwali this year, according to RedSeer Consulting.
AMZN boasts more than 80 million products for sale in India, along with over 120,000 merchants and dozens of warehouses it uses to ship goods to customers faster than just about anyone else.
Some analysts think this Diwali could be a turning point in the retail space:
“This season could decide who’ll be the ultimate winner,” said Haresh Chawla, a Mumbai-based partner at private equity firm India Value Fund Advisors and an angel investor. “The loser will get unnerved and the victor can build internal confidence and rally the troops for the bigger game.”
The winner will have top billing in what RedSeer Consultancy estimates will be an $80 billion to $100 billion Indian e-commerce market by 2020, up from just $13 billion today. With only 2% of India’s massive population currently shopping online, the growth opportunity can’t be overstated.
And Amazon is doing everything it can to ensure it reaps all the benefits.
Amazon shares were slightly lower in premarket trading Monday at $836.00. Year-to-date, AMZN has surged 23.88%, versus a 6.09% rise in the benchmark S&P 500 index during the same period.