While Flipkart will continue to be the market leader, Amazon will gain the share that is currently enjoyed by Snapdeal and other retailers in India. According to the new Bank of America Merrill Lynch report, the US-based retailer’s gross merchandise value (GMV) is likely to grow from 21 per cent in 2015 to 37 per cent in 2019. Flipkart’s market share will be 44 per cent, while Snapdeal’s share is likely to drop to 9 per cent in 2019 from 14 per cent in 2015.
Amazon is expected to generate $81 billion in GMV, while its operating profit could touch the $2.2 billion mark by the year 2025. The marketplace is likely to generate $5.5 billion in GMV in 2016, says the report. The company is currently losing $1 billion annually in the country.
The US-based retailer’s founder, chairman and CEO, Jeff Bezos, had already made an investment of $2 billion in its Indian unit and decided to invest an additional $3 billion, bringing the total amount to $5 billion. The Amazon Seller Services has received Rs 8,618 crore since 2015 and more than Rs 9,600 crore ever since it was set up. Amazon has also filed to increase its authorised capital from Rs 8,500 to Rs 16,000 crore, according to media reports.
As far as the current gross sales of Amazon India are concerned, they have been higher than that of Flipkart’s standalone sales for the last couple of months. (KD)
Fibre2Fashion News Desk – India
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