Monday, 21 March 2016

Why Alibaba group plans to enter the Indian E-Commerce Market?

Chinese E-Commerce giant AliBaba founded by Jack Ma plans to enter the Indian market in 2016 and is looking at opportunities to build the business organically or through other means. Alibaba Group President J Michael Evans along with the Global Managing Director K Guru Gowrappan met the Indian Telecom Minister Ravi Shankar Prasad last week.

Alibaba Group’s interest in the Indian E-Commerce market has already been displayed previously by its investments in Paytm and Snapdeal. Although there is no confirmation whether Alibaba would enter as a solo player or partner with some existing big players of the Indian Market, its entry is definitely going to change the shape of the current landscape.

With Amazon also having established its foot firmly into India in the past 2 years, the competition is going to be even tough as well as exciting. With so many big players trying to attain or retain their top slot in the Indian E-Commerce market, one thing is for sure that the consumers would be delighted by the promotional offers that would be flooded upon them, also expect a higher efficiency from the existing players to be the favourite brand of the people.

Recently there was a kind of negative sentiment when Flipkart’s valuation dropped from 15 USD bn to 11 USD bn, but Alibaba Group’s interest in entering the Indian Market directly certainly revives the hope that the E-Commerce revolution has just begun in India and has a really long way to go.

Article by Rohit Jha
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