In a recent announcement, Amazon.com, Inc. (NASDAQ:AMZN) expressed its intention of investing $2 billion in the growing Indian economy. There is a dual purpose on this move; the first is to facilitate the company’s growth through a developing market in India so that the objective of touching a billion in gross sales becomes a reality. Secondly, the idea is to pose stiff competition to the local e-commerce company Flipkart, which has recently acquired $1 billion in the form of investments.
While Flipkart raised this impressive amount from investors, what Amazon.com, Inc. (NASDAQ:AMZN) is trying to do is to cash in on the booming e-commerce market in India, which is likely to witness a growth figure that is forecasted to be higher than even in China. Much of this growth is attributed to the younger population of the country, assuming an Internet savvy flavor and, as a result, relying more than ever on broadband connections and smartphone usage.
“We see huge potential in the Indian economy and for the growth of e-commerce in India. With this additional investment of $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India.” Jeff Bezos, Amazon.com, Inc. (NASDAQ:AMZN)’s founder & Chief Executive Officer, was quoted as saying in a statement.
Amazon.com, Inc. (NASDAQ:AMZN) arrived in India around a year ago and its performance since its introduction has surpassed even the most liberal expectations due to the impetus provided by small and medium-sized ventures. It is on the basis of this trust and brand value, cultivated over the past year, that the company decided to invest a huge amount, the idea being to spur the already flowing momentum to the next level.
Although based in North America and operating a full-fledged branch in the continent, Amazon.com, Inc. (NASDAQ:AMZN) boasts of a prominent global presence. While much of its merchandise is sold through its retail websites, there is a provision wherein third-party sellers and individual sellers can publish and sell their content. Particularly successful ventures of this company are Kindle Publishing and Amazon Prime as these have not just expanded the company’s customer base but have augmented its revenue generation too.