Amazon India May Launch In-House Beauty Products

Amazon India has increased focus on the high margin cosmetics category and might be in talks with local manufacturers to launch Amazon branded personal care products in India, according to a report in the Economic Times, which has been widely re-circulated by others.

Amazon LogoIndia’s online beauty and personal care market is expected to cross $3.5 billion by 2022 from about $300 million now. Sales of both international and Indian beauty brands are increasing. Ananth Narayanan, chief executive of Myntra and Jabong, both fashion and lifestyle e-commerce portals owned by Amazon’s competitor Flipkart said, “We are looking at a contribution of about 8% [from the beauty segment] to our overall revenue by 2020, from the current 1%.”  Shalini Raghavan, chief marketing officer, consumer products division, at L’Oreal India said, “We have definitely added consumers (from tier 2 and 3 towns) through our online presence. With our retail footprint alone, [we] would not have had the same access earlier.”

Amazon India is reportedly talking to contract manufacturers in a few categories within skincare and makeup. The company’s recent partnership with the Shoppers Stop chain of stores will build a steady distribution channel for its beauty products.

February 14, 2018   No Comments

Amazon India to Launch Online Grocery Marketplace

With the Government of India’s approval to invest $500 million in its food retail business, Amazon India will soon commence its online grocery and food retail division. Amazon has almost doubled its authorized capital to $4.74 billion matching its earlier capital commitment of $5 billion made in June, 2016.

The company has already launched Amazon Now, an app to facilitate home delivery of food and grocery items from designated grocery chains. Currently, Amazon’s warehouses in India do not store food items to meet the Amazon Now demand, but will do so from March onward this year.

basket of vegetables

India’s online grocery and food retail market is set to witness more competition as Alibaba along with Paytm Mall is set to acquire about a 35% stake in hyperlocal grocery delivery startup BigBasket against an investment of $300 million. Flipkart is also aggressively looking to enter the food retail business in India.

January 11, 2018   No Comments

WhatsApp Partners with eTailers in India

With a 200 million plus user base that communicates in 10 Indian languages to generate 50 billion messages a day, Facebook-owned WhatsApp is turning toward businesses in India to monetize the platform. It has already partnered with travel portals  MakeMyTrip and Goibibo, and is now planning to add Flipkart, utility agencies, movie houses, and telecom players too. Users will be able to access the services offered and make payments on WhatsApp itself via a new WhatsApp wallet.

WhatsApp Logo

In February this year, WhatsApp co-founder, Brian Acton, met India’s minister for Information Technology Ravi Shankar Prasad to discuss ways the company could contribute to India’s digital commerce initiatives, reports the Business Standard.

 

October 31, 2017   No Comments

India Sees Record Private Investment in Q3 2017

A report by Ernst & Young says that private equity/venture capital investments in India touched a record high of $8.7 billion in the  July-September quarter, a sharp increase over last year’s $3.1 billion for the same period.

E-commerce recorded $2.6 billion across 18 deals primarily driven by Softbank‘s $2.5 billion investment in Flipkart. Real estate recorded $2.3 billion across 13 deals, and financial services announced deals worth $1.4 billion across 25 transactions for the quarter, reports the Times of India.

India is clearly maturing as a private equity market with bigger and complex deals becoming more common. Greater numbers of large deals and buyouts support this thesis and it is clearly visible in the third quarter 2017 investment numbers,” Vivek Soni, partner and leader for PE Advisory, EY said.

Magazine with Investment Report written on itThe quarter also saw record exits for PE players. Exits recorded a year-on-year rise of 128 percent in value terms at $4.7 billion across 65 deals, driven by exits via IPOs, open market, and secondary sale, noted the report.

October 10, 2017   No Comments

e-Bay India Merges with Flipkart

Online selling platform eBay India, and Bangalore, India-based e-commerce firm Flipkart Group formally concluded their merger process.

Flipkart will own and operate eBay, while the latter will function as an independent entity even as the two firms explore opportunities in cross-border trade. Customers from Flipkart and eBay will get access to both of the firm’s inventories. Additionally, the partnership will provide an opportunity for Flipkart’s sellers to expand their sales globally.

Flipkart Logo

VCCircle reports that eBay had an early-mover advantage in India, but was unable to capitalize on it and lost to younger rivals Flipkart, Snapdeal, and Amazon India.

August 16, 2017   No Comments