Amazon’s 7 Strategies to Win in India despite Mounting Competition

Amazon has all eyes set on the Indian e-commerce market. After losing the game against Alibaba in China, Amazon seems to have learnt its lesson and is seen developing strategies that are expected to give it an edge in the second largest potential e-commerce market of the world.

The customer-centric approach and the ability to think globally but act locally by developing a good sense of the market is what seems to be a key to Amazon’s planning. With Walmart (Amazon’s e-commerce rival) planning to acquire a majority stake in Indian born e-commerce entity Flipkart, it would be interesting to see the battle of two foreign giants for establishing their supremacy in the Indian market. However, the ecommerce portal may come up with various Amazon offers to retain its customers.

Customer not competition is the focus

The best part of Amazon’s strategy to win India is that it is focusing more on the customer than the competition. Amazon has been providing more attention in regards to the creation of more value for its buyers and sellers rather than paying extra heed to the rivals in the market.

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The commitment to deliver is highlighted in Amazon’s approach of mixing Research and Development with its global thinking and local market knowledge. Apart from that its big-ticket investment plans of around $ 5 billion in the Indian market back its intent of winning India. In fact, the second largest R&D centre of Amazon is located in Bangalore.

7 Point strategy to capture the Indian market

The planning and strategies of Amazon to build upon its stature and base in Indian market can be summarized into the seven-point vision cum strategy framework on which the global giant seems to be working.

• Knowing Your Customer (KYC): This is the first step for any seller or business to build its base. Knowing your customer is half the battle won. Amazon is doing and has done exactly the same. Realizing that Indian consumers are facing difficulty in buying products online due to lack of knowledge in terms of the reading of product reviews and analysis Amazon came up with an idea of establishing kiosks in local retail shops.

• Scalability: Scalability of a website is its ability to be browsed on various devices like Mobile, PCs, and Tablets etc. with relative ease. It becomes all the more important for an e-commerce to be scalable in the Indian context where most of the users are on low-speed internet connection and are using feature phones. Catering to their needs Amazon brought out a lighter version of its website. The version provides nice browsing experience across various devices.

• AI at work:  Artificial intelligence (AI) has been a revolutionizing force in the world of the internet economy. Capitalizing on the strength of AI Amazon is ensuring that delivery and address location are made smooth for making the user experience better.

• Flushing out Fake:  Keeping in mind the problem of fake reviews, products, and buyers that have plagued the Indian e-commerce market, Amazon, developed an algorithm to detect fake reviews, products, and fraud transactions. The step is aimed to build confidence among buyers and sellers.

• Expansion on the cards:  To improve the customer experience and to reach the nook and corner of the market one requires expansion of its infrastructure.  Amazon is doing just that. With its plan of expanding fulfilment centres in India, it is going to invest big bucks in infrastructure.

• Marketplace model: In extending its reach, Amazon has adopted marketplace model. This marketplace model allows retail sellers to sell their products on Amazon. The Tatkal initiative and Amazon vans have made it possible for a seller to register and sell on Amazon within an hour.

• Research and Development with local involvement: To understand the market and create user-friendly experience Amazon has built up its second largest R&D base in the silicon valley of India.

Eastward expansion

Building on its seven-point strategy framework Amazon is expected to get a good strength in the Indian market. Experts have speculated that taking advantage of its position in India Amazon may plan to expand its reach in East Asia and ASEAN region. In that case, Indonesia would be Amazon’s first target as it has similarities with Indian market and has a large potential customer base in the ASEAN region.

However, for now, all eyes are set on Amazon’s India win policy and how it tackles the Walmart-Flipkart deal in its path to success.