• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
TechEngage®

TechEngage®

Technology news and opinions

  • Tech News
  • Reviews
  • How-to
  • Roundups
  • Science
    • Energy
    • Environment
    • Health
    • Space
  • Apps
  • More
    • Opinion
    • Noteworthy
    • Culture
    • Blockchain
      • Cryptocurrency
    • Events
    • Deals
    • Startups
      • Startup Submissions
  • Videos
TechEngage » News » World of Tech

Amazon looking to setup physical retail stores in India

Avatar Of Fazeel Ashraf Fazeel Ashraf Updated: December 28, 2019

Amazon
Amazon is looking to setup physical retail stores in India after facing some tough competition from Walmart, after it had bought e-commerce site Flipkart.

Amazon is looking to set up physical retail stores in India. This decision comes soon after the e-commerce giant launched several new products in the US.

Amazon will be buying about 49 percent of More’s shares, while 51 percent of the shares will be bought by Amazon’s partner and private equity firm Samara Capital.

Indian laws require that for any foreign business to operate in the country, the majority owner should be a local enterprise.

Amazon and Samara have combined to form an entity called Witzig Advisory Services Private Limited which will contain all the ownership details through the deal. This deal is estimated around $585 million according to Indian sources.
Amazon is looking seriously at investing in brick and mortar stores, not just in the US, but across the globe. Brick and mortar stores are slowly making a comeback, and are therefore a hot commodity right now, especially in India.

Amazon has the first experience of acquiring physical stores. In 2017, Amazon bought the American supermarket chain Whole Foods for a whopping $16 billion dollars.

The e-commerce giant is following a similar gameplan with this acquisition.

Currently, Amazon is in a tough battle with Flipkart over the control of India’s e-commerce space. India is a growing hub of technology, so investors have a pretty strong chance of making some quick bucks in the Indian market.

India’s e-commerce industry is expected to increase four times in just 4 years, by 2022.

According to auditing firm Pricewater House Coopers (PWC) and trade association of Indian Information Technology Nasscom, the Indian e-commerce market will observe a leading compounded annualized growth rate of 35%.

Flipkart is no small fish to fry. Ever since it was bought by Walmart for $17 million earlier this year, it has been in stiff competition with its biggest rival Amazon.

This deal got Walmart through the door into India’s e-commerce industry.

This opportunity also allows Walmart to bank on Flipkart’s expertise and technology to explore further avenues and get an insight into the Indian consumer’s mind.

Amazon, it appears is going to come on top of this deal, since it has already acquired fintech startup Tapzo, to establish its own payment service in India.

Amazon is also in control of several packing warehouses in India. After the More deal, Amazon will truly be a force to be reckoned with.

E-commerce is a booming business in India

E-commerce websites will create more than 1 million jobs in India. The return on investment is almost foolproof. There is a high demand for online shopping but only a few websites are able to provide fast shipping times and efficient payment methods.

Plus the cheap human labor makes this a no-brainer for the likes of Amazon and Walmart. This is all good and well, but this sudden boom in foreign investment has raised suspicion of local lawmakers.

Policy advisers are looking to apply stricter policies for e-commerce trading, which will probably mean fewer discounts for the customers. Both Amazon and Walmart will be fighting tooth and nail to retract this policy.

This post was orginally published on: September 21, 2018 and was updated on: December 28, 2019.

Related Tags: Amazon Flipkart

Related Stories

  • Google Hit With 1.5 Billion Euro Fine By Eu Anti-Trust Commission

    Google hit with 1.5 billion Euro fine by EU anti-trust commission

  • Kids Addicted To Technology; Techden To The Rescue

    Kids addicted to technology; TechDen to the rescue

  • OReilly, Addison-Wesley, Microsoft Press to Donate

Avatar Of Fazeel Ashraf

Fazeel Ashraf

Former Author @TechEngage

IT graduate from the National University of Science and Technology with a passion for writing. When not reading or writing, I can be found listening to rock and metal or playing some classic jams on my electric guitar. I’m also a big fan of horror movies.

Reader Interactions

Share Your Thoughts Cancel reply

Please read our comment policy before submitting your comment. Your email address will not be used or publish anywhere. You will only receive comment notifications if you opt to subscribe below.

Primary Sidebar

Become a contributor

We are accepting contributor applications. All applications will be decided in 3 days after applying. To learn more click here.
TechEngage-Apple-News
TechEngage-Google-News
Canon Camera illustration

My Two Favourite Canon Camera’s for beginners

AirPods Alternatives on Amazon

Best AirPods alternatives on Amazon in 2023

Recent Stories

  • Apple strengthens account security with hardware keys support
  • 10 Best Messenger Apps in 2023
  • Essential Netflix tips and tricks 2023
  • How to lock Netflix profiles in 2023
  • Best laptop cooling pads to buy on Amazon in 2023

Footer

Discover

  • About us
  • Newsroom
  • Staff
  • Advertise
  • Send us a tip
  • Startup Submission Questionnaire
  • Brand Kit
  • Contact us

Legal pages

  • Reviews Guarantee
  • Community Guidelines
  • Corrections Policy and Practice
  • Cookies Policy
  • Our Ethics
  • Disclaimer
  • GDPR Compliance
  • Privacy Policy
  • Terms and Conditions

Must reads

  • Best AirPods alternatives on Amazon
  • Best PC monitors for gaming on Amazon
  • Best family board games
  • Best Graphics Cards (GPUs) for gaming
  • Best video doorbells without subscription
  • Best handheld video game consoles
  • Best all-season tires for snow
  • Best mobile Wi-Fi hotspots
  • Best treadmills on Amazon
  • Best AM radios for long-distance reception

Download our apps

TechEngage-app-google-play-store

Copyright © 2023 · All Rights Reserved · TechEngage® is a Project of TechAbout LLC.
TechEngage® is a registered trademark in United Kingdom under Trademark Number UK00003417167 and is ISSN protected under the ISSN 2690-3776 and OCLC Number 1139335774.

Go to mobile version