Amazon vs Flipkart (Walmart)

Context: Indian Market has seen exponential rise in usage of low-cost smartphones (less than
100 dollars) and low-cost broadband. These two factors helped put a billion plus users on the
internet. These helped kickstart the nascent e-commerce industry from the margins to dominating
the marketplace.
Competition: In one of the fastest-growing markets in the world, the stakes are high. As online
shopping platforms continue to gain traction among a young population four times the size of the
U.S., the Indian e-commerce market is estimated to reach $200 billion by 2026. The potential for
serious profit isn’t lost on either company. Both Amazon and Flipkart have already funneled
billions of dollars into expanding infrastructure and delivery capacity in the country.
History: Founded in 2007 by two former Amazon employees, Flipkart is now tasked with the
challenge of maintaining its market-share lead over Amazon India. On its website, the e-
commerce engine claims to be the country's "leading e-commerce marketplace with over 80
million products across 80+ categories" and approximately 100 million registered users.
Amazon's catalog, however, trumps that of Flipkart, with over 168 million different product
offerings available in India
Same Market, Different Approaches:
A) Flipkart has made several acquisitions over the past few years including ebay(India),
Phone Pe (Payment Portal similar to Paypal), Myntra and Jabong(Online fashion retailer)
to bolster its market leadership position. Amazon on the other hand is looking at India as
the next big market and is pumping billions of dollars to develop its presence in India.
B) Flipkart has big presence in the rural towns/villages of India. It has built a robust
partnership with the hyper local delivery startups to again competitive advantage.
Amazon, on the other hand has strong presence in the urban market.
C) Flipkart helped the online commerce industry by introducing the concept of COD(Cash
of Delivery)- This helped consumers to pay for the product in cash when the item is being
delivered. This strategy allowed Flipkart to gain a huge segment of customers in Rural
India – where Credit/Debit cards are not in high circulation. Amazon is looking to lock its
consumers via its brand loyalty program (Prime Users)

Present Situation:
Regulatory Compliances have helped Flipkart dominate and have a leadership position in e-retail
space. Amazon – with deep pockets has been able to push deep discounts as a strategy to gain
market share. In the recent past – India has liberalized a lot of Business rules to allow for equal
competition for foreign e-retailers to do business. This coupled with the acquisition of Flipkart
by Walmart has evened the differences between the two giants. New strategic steps are being
taken by both the firms to win the Billion plus user Indian Market.