In preparation for the Indian festival season just weeks away, Amazon and Flipkart last week began their 4-day sales drives. Fast and convenient logistics will be key in this fiercely competitive market.
Amazon has seen some impressive growth in the Indian retail scene – 3 in 4 internet users in India visited Amazon last month – but it’s still Flipkart (on 84%) which has the advantage in this market. But influenced by the primarily urban nature of the Indian internet population, this sales season has become the battle of convenience. Amazon’s substantial investments in its Indian operations should stand it in good stead against its main competitor – mainly in offering deal-hungry internet shoppers cheap, quick and easy ways of getting their hands on their products.
It’s these factors which are most important to Indian digital consumers. Like in other markets, free delivery is the top online purchase driver among internet users in this country. But Indian digital consumers are much more likely to value an easy returns policy, next-day delivery and above all click and collect facilities – all factors which require a robust and flexible logistics network, which Amazon boasts.
