After Amazon, Flipkart, Reliance and Tata Neu, India’s $133 billion ecommerce market may be too little for a fifth player
The Indian ecommerce space may soon run out of space to accommodate any more players if another big player tries to make an entry, according to a report.
Bernstein has maintained that the Indian ecommerce sector would not be a “winner take all” opportunity.
The four biggest players in the segment are Amazon, Flipkart, Reliance and Tata Digital.
Every big Indian business has been chasing the ecommerce space, which is expected to clock half a billion users by the end of this decade. Whether it’s Amazon, Flipkart, Reliance JioMart or Tata Digital’s latest super app Tata Neu, everyone has been leaving no stone unturned to dominate the customer demand and mindspace.
Now, a new report by JM Financial has revealed that we may soon run out of space to accommodate any more players. The Indian financial services company noted that the entry of another large player into the already “crowded” ecommerce space could instead lead to further consolidation, which will be harmful for smaller players trying to make a mark.
“Smaller “me-too” players are likely to lose out. Further, we see these large players continuing their hunt for specialised e-commerce players to fill their portfolio gaps in order to maintain leadership. Besides, we could see them acquiring e-commerce enabling companies, e.g., logistics, data analytics, etc. to support organic growth,” the report added.
Meanwhile, Bernstein has maintained that Indian ecommerce would not be a “winner take all” opportunity due to low ecommerce penetration of different categories and customer segmentation. The private wealth management firm noted that ecommerce is the largest segment in India internet and is expected to grow more than five-fold to reach $133 billion by 2025. Tata Neu may eat into Amazon, Flipkart and Reliance’s share
Tata Digital’s superapp Tata Neu — which brings all of its digital services and apps […]
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