Amazon Inc (NASDAQ:AMZN) ventures into the Indian E-market

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By Stefan Larson on October 3, 2014 Company

Online retailer Amazon Inc (NASDAQ:AMZN) has decided that it will start selling packaged items and beverages in India, starting mid October this year. Amazon Inc (NASDAQ:AMZN) has already started accepting bookings for the new low calorie variant of Coke, Coke Zero. Amazon Inc (NASDAQ:AMZN) will be the first international e-portal to take this step in India.

Amazon Inc (NASDAQ:AMZN) started operating in India last June, and is set to start selling before Diwali. Amazon Inc (NASDAQ:AMZN) said that they’ll start with 100 percent gourmet products and will expand to new territories in a few months time. The CEO of Amazon Inc (NASDAQ:AMZN) said that he has high expectations from India as the market there is large enough for Amazon Inc (NASDAQ:AMZN) to formulate their products.

The eventual aim would be fresh foods. India has a large market for fresh foods and Amazon Inc (NASDAQ:AMZN) will be capitalizing on this opportunity. Amazon Inc (NASDAQ:AMZN) started selling fresh foods through its Amazon Inc (NASDAQ:AMZN) Fresh program in 2007. They started in Seattle and have now extended to Los Angeles, North California and San Francisco.

Amazon Inc (NASDAQ:AMZN) is already in talks with Kellogs, the breakfast cereal manufacturer and Cornitos the nachos manufacturers. Olympia Industries which is a premium seller for Amazon Inc (NASDAQ:AMZN) is also responsible for introducing Coca Cola on their platform. They are known for bringing new products into the warehouse of Amazon Inc (NASDAQ:AMZN) and making their ‘artillery’ vast.

Online grocery retail is still in its infancy in India and analysts believe that because of the culture and norms there, it will take time for people to get used to these things. Amazon Inc (NASDAQ:AMZN) should emphasize on the significance of online retailers, and the convenience they bring. Technology spreading in India at a rapid speed which is also a good sign for online retailers to invest in technology.

Amazon’s (NASDAQ:AMZN) international competitors haven’t yet ventured into this sector as nobody is daring to take the risk of selling groceries online. They don’t know the pattern of the Indian market but it is expected to grow to 200 billion dollars by 2015, opening up a huge pool of prospects for these companies.

Amazon Inc (NASDAQ:AMZN) has already made its intentions clear with the finance it has announced to invest in the venture which totals $2 billion. Amazon India’s (NASDAQ:AMZN) head announced that they’ll be getting back more in return by a move into other categories soon once Amazon Inc (NASDAQ:AMZN) has cemented its position in India

Adding on more categories will make it easier for Amazon Inc (NASDAQ:AMZN) to focus on product selection, extending its power into different markets. Currently Amazon has shown its seriousness by offering same day delivery and lowering its prices to such an extent that only a giant which has economies of scale can do so and survive. They have been heavily advertising and their local competitors like Flipkart haven’t been able to match the marketing budget which has resulted in Amazon (NASDAQ:AMZN) coming out on top.