Why? to help small businesses in India or to keep the lead on Walmart-Flipkart. While ecommerce and online shopping is integral part of urban Indian’s shopping spends , I really don’t think Bezos is doing this to help Indian small businesses .
Amazon (bezos) has built its empire on Astute technology cum business sense and long term planning. right from logistics companies to Amazon cloud are now key contributors to Profit (not top line though ) for Amazon . Not to forget that Amazon lost the prestigious pentagon contract to Microsoft. Cost or Pedigree ?
A lot of indian companies have tried to build something for Indians. for example craftsvilla . Craftsvilla sources all their products from indian local manufacturers , artists and artisans. I know they spend a considerable amount of resources in training these local trader and underrated artists , designers to produce world class products. Amazon on the other hand only supports profiteers and aggressive ad monetisation strategies. Here are some points to consider
- Both Amazon and FK charge a bomb for preferred product tags.
- Today, in india , its is almost impossible for any brand and resller, with out deep pockets, to make livelihood or business from these market places.
- By some un-confirmed reports, The brand launch and Ad sales business for this companies is more than 500 Crores per year each, india.
- Most of the larger resellers are strategic partners or investments of these firms.
- Many of the High margin products – from mattresses to electronics are private lable products manufactured by subsidiaries of Amazon.
- from my personal experience, I can say that most of the fashion accessories, sold on Amazon and also flipkart, like cosmetics, Perfumes, Watches are first copies.
So where is the intent of helping Indian Small businesses .Now, their plan includes building 100 Digital haats in Villages . 100 Village Haats In country of more than 500,000 villages . It would be good to see if this $1 Billion makes any differences in the Lives of needy.