India’s first organised retailer, Future Retail, had a market cap of Rs 2,100 crore, while e-tailer Flipkart was valued at around R12,000 crore. After a series of funding, the most recent one being a whopping $1 billion, Flipkart is today valued at around R43,000 crore ($7 billion), while Future Retail stands at R2,886 crore.
More recently, when Japan’s SoftBank invested $627 million in Snapdeal, it was with the hope that India has the potential of producing another Alibaba.
Understandably, brick and mortar stores are feeling left out, and many are being vocal about it. In fact, the loudest among the brigade is none other than Kishore Biyani, the man behind Future Group. He raised a furore over the Big Billion Day sale, accusing Flipkart of predatory pricing.
“Prices for products on Amazon are determined by the sellers. We work hard and continually innovate to offer services such as FBA (Fulfilment by Amazon) and Easyship to sellers on our platform, which enables them to significantly lower their cost of selling and reducing defects as they sell to a nationwide customer base. Sellers pass on these savings as lower prices on the platform. On occasions, to promote our platform, we run marketing promotions,” says an Amazon India spokesperson.
- See more at: http://indianexpress.com/article/business/companies/online-retail-in-india-more-than-18-month-party/#sthash.edvqWBL6.dpuf
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