The Great Indian E-Commerce War

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Mudit Singhal, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

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With Alibaba deciding to enter into E-commerce space in the country, the market is only going to be more competitive and the competition, fierce. While Alibaba has investments in Snapdeal and PayTm in India they have clearly shown their interest in entering the market through direct operations this year.

The Indian players and industry giants Flipkart and Snapdeal engaged themselves in taking a shot at each other over micro blogging website Twitter. Sachin Bansal, Founder, Flipkart tweeted “Alibaba deciding to start operations directly shows how badly their Indian investments have done so far.”

Snapdeal’s Kunal Bahl was quick to respond “Didn’t Morgan Stanley just flush 5 billion worth market cap in Flipkart down the toilet. Focus on your business, not commentary :)” In February this year Morgan Stanley had marked down Flipkart’s evaluation by 27% taking their valuation from $15.2 billion then to close to $11 billion.

The rivalry has been ongoing for quite some time now as Snapdeal campaigned with a tagline “You don’t need a billion offers to amaze you. You just need to snap the best ones.”  aimed at Amazon and Flipkart’s Big Billion Day Sale.

The E-commerce war in India seems to have reached another level now, but its the stability which the companies are looking out for. Experts in the industry have not ruled out a possibility of consolidation of E-commerce players.

So lets grab the bean bag and popcorn to enjoy the drama.

References:

http://economictimes.indiatimes.com/articleshow/51554922.cms

 

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