Competition is heating up in India ecommerce sector as foreign ecommerce giants are battling for its market share.
According to India Brand Equity Foundation, Ecommerce industry is projected to expand in 2026 to US $200 billion. In 2016, India consumer are spending 47% of the Ecommerce retail value on electronics, and 31% on apparels.
Based on Alphastreet.com, the current industry leader in India ecommerce is Flipkart 39.2% of the market share, closely followed by Amazon at 31% and various competitors at 21%.
Walmart is coming in aggressive with a US $16 billion investment proposition in Flipkart. This will result in a 77% ownership in Flipkart that will position Walmart a strong competitor with Amazon. Other notable giants like Alibaba owns 50% in Paytm Mall.
However, Walmart deal is getting headwinds as SoftBank, a major shareholder in Flipkart, may face double taxation once its 21% stake is sold to Walmart. SoftBank is weighing its options and the deal may hold for 6 to 12 months.
Commentary by Maverick Chung