Now that Prime Video is here in India, it is safe to say that Amazon is currently ahead of Flipkart in the e-commerce sector. Consumers now have more reasons to pick Amazon over Flipkart or Snapdeal.
Most experts feel that the scales are tilting in favour of the Jeff Bezos-owned company, what with customer acquisition being the most important thing in this sector right now.
Offering video services as a part of an e-commerce package is uncharted territory in the Indian e-commerce space, something that Flipkart and Snapdeal would find both hard and expensive to match.
Video is the Way-to-Go
Video consumption on mobile devices has increased two-fold in the past year or so, primarily after Jio 4G made its debut. And this content proliferation is expected to grow further in the next 2-3 years.
Free internet and services, via Jio 4G, have enabled millions of users in India to entertain the thought of consuming video content online.
Amazon will, therefore, make merry and expect to add more users than Flipkart and Snapdeal in the foreseeable future.
The customer acquisition costs in Indian e-commerce have been climbing rapidly due to intense competition between multiple, well-funded players. Only 2 percent of website visits currently end in transactions. Thus, there is a gap between potential and actual buyers.PWC 2015 Report
There are two benefits for consumers who subscribe to Amazon Prime. Not only do they get discount delivery charges, they also get first priority delivery. In addition, now they also get to watch local as well global content without paying anything extra.Jayadevan PK, Managing Editor & Co Founder at FactorDaily
Jayadevan also expects Amazon to attract well-heeled customers that will guarantee the company instant returns for their large-scale investment.
Amazon is set to pump a lot of millions into the Indian market over the next few years, estimating profitability at least by 2018. Prime Video will only serve their cause for good.Jayadevan PK, Managing Editor & Co Founder at FactorDaily
Comparisons Between Amazon in US And India
In the US, the e-commerce company has beaten Walmart to become the country’s leading retailer. But when it comes to online retail business, Amazon is on its own.
But will Amazon’s US model succeed in India, keeping in mind the vast differences in consumer demographics and shopping trends between the two countries? Only time will tell.
What Amazon Offers in India
- Indian customers can buy global products from Amazon.com
- Amazon Prime offers discounts and fast delivery options
- Its Prime Video service comes loaded with series like The Grand Tour, Mr Robot and local films like Sultan and Kabali
Amazon will cater to the Indian market with its series of local Amazon original content, giving them compelling stories through digital video.Tim Leslie, Vice-President, Prime Video International, Amazon
It looks like Amazon has done its homework about the Indian market in order to prepare itself to tackle the likes of Flipkart and Snapdeal. Now they can truly claim to offer a whole range of services, much to the envy of their rival online shopping portals in India.
India is on the cusp of a revolution. They don’t want to settle for being told when they can watch their favourite TV shows. Instead, digital video platforms give them the freedom to watch the shows, anywhere, anytime.Tim Leslie, Vice-President, Prime Video International, Amazon
Over one-third of the 15 million sales recorded by Amazon’s recent Diwali sales comprises Prime customers. This consumer segment, aged between 18 to 35 years, lives in tier 1 and 2 cities.
Prime Video will allow Amazon to increase its membership base in India, and also empower them to monetise their businesses.Jayadevan PK, Managing Editor & Co Founder at FactorDaily
Flipkart’s recent failings and estimated drop in margins leave them with little to no ground for mistakes. But, Jayadevan says, Flipkart has other things to take care of than rivalling Amazon in the video-content space.
Flipkart is going back to basics to focus delivering better customer experience. Partnering with digital content providers will not be feasible for the company. They don’t have the bandwidth for it, and it will be an expensive model to replicate for them.Jayadevan PK, Managing Editor & Co Founder at FactorDaily
Unless Flipkart get a major business behemoth to invest over $300 million in their company, the scales are heavily tipped towards Amazon revolutionising the e-commerce industry in India.
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