Amazon India’s gross sales volume for the June quarter has jumped 88 per cent. The retailer’s growth has been largely driven by both existing and new customers, with key market share gains in categories such as smart phones— where it has won key exclusive deals with brands such as Samsung, Moto and Redmi— and large appliances. It also continues to be leaders on key metrics such as website and mobile app visits.
Over the past four years, Amazon has invested aggressively in India, committing to spend $5 billion to grow its business in the country. Amazon has been spending money on building massive warehouses, a large logistics unit, marketing, discounts and on increasing product assortment in India. These efforts have translated into a significant lead in key metrics such as app downloads, desktop visits and mobile website visits.
The Indian online retail market continues to grow, but at a slower pace than was previously expected. There was a temporary break in growth rates last year due to demonetization. What has also happened is that discounting has come down over the past few quarters. Over the past year, most of Amazon’s key initiatives—including the launch of Prime—have helped expand the e-commerce market in India.