Amazon’s India Innovations Adopted Globally

Seattle-based Amazon‘s innovations in India are being adopted by its teams from across the globe including its U.S. and European e-commerce arms, Terry Hanold, vice president of Amazon’s international consumer technology, said.

The Times of India reports that a successful innovation, called “seller flex,” allows a seller to make their location available for Amazon to store inventory and help them receive an additional stream of revenue. “We saw customers benefit and that idea has been scaled out to other Amazon marketplaces, allowing us to expand our footprint without having to invest a lot in physical infrastructure,” said Dale Vaz, director of software development at Amazon India.

Amazon’s seller app has tools and features to help sellers do their inventory management and logistics better. “These are India specific tools that we built for sellers to help manage the business more effectively. Now we are rolling this out to other markets including the U.S.,” said Hanold.

To win in India, Amazon shifted focus from Apple to Android mobile devices. “We looked at how we could support customers who are on smaller devices which have less computing power, and we looked backwards, we went into the app and stripped down large portions of it that we believed weren’t useful to the customers. We removed voice search and image search. From 17MB, it came down to 2MB,” Vaz said.
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 To support the sale of used items, Amazon-owned affiliate, Junglee, built a system which enables Amazon to have a product picked up from the seller’s home, vet, pack, and ship it to the buyer using the Amazon India infrastructure. It also built an escrow account, which allowed the company to hold the money until the buyer could verify the product before the money was transferred to the seller’s account.
Now, this is being implemented in other markets of the e-commerce giant.

August 15, 2017   No Comments

India Approves Amazon’s $500 Million Investment in Food Retail

India’s Department of Industrial Policy and Promotion approved e-commerce major Amazon‘s proposed $500 million investment in retailing of food products in the country. The company will launch a wholly-owned subsidiary in India to stock food products and sell online.

Last year the government allowed 100 percent foreign direct investment for trading, including through e-commerce, in food products manufactured and produced in India. In 2016-17 (December to April) the food processing sector in the country received FDIs of $663.23 million, reports the Economic Times.

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July 13, 2017   No Comments

Amazon Considers Inorganic Growth in India

After buying Whole Foods in the United States, Amazon is targeting groceres in India. Bangalore, India-based BigBasket, a five-year-old e-grocer, has signed a 60 day exclusivity agreement with Amazon India  during which time Amazon will conduct a due diligence on the company’s assets with a view to acquisition

Valued at $450 million since its last round of funding, BigBasket’s asking price of  $700 million stalled the transaction, reports ET Retail. A final value will be decided once the inquiry is completed successfully. It is uncertain whether Amazon will go ahead with the final deal and so BigBasket is also on the lookout for fresh capital.

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Acquiring BigBasket, which has created a supply chain and back end infrastructure, will add to Amazon’s e-commerce growth; it will also enable Amazon’s entry into the hugely untapped grocery and food market in India. Technopak pegs the grocery and food market in India at $400 billion of which organized retail contributes $12 billion to the industry, while online e-grocers have a 4% share, its report said, outlining viable prospects for the players.

June 21, 2017   No Comments

9 U.S. Companies among Top 25 Best Workplaces in India

Based on LinkedIn‘s study of actions, nine American companies are listed among the 25 most desirable companies for employees in India.

Logo of Linked in's Top Companies Where India Wants to Work

At #2 is Amazon: With more than 10,000 employees in India Amazon is rapidly expanding its Prime Video offerings in the country, investing $5 billion in 2016 with plans to double that investment in 2017.

At #3 is KPMG India: This firm operates in 152 countries worldwide. KPMG India has offices in Chandigarh, Gurgaon, Noida, Ahmedabad, Vadodara, Mumbai, Pune, Bangalore, Kochi, Chennai, Hyderabad and Kolkata.

At #7 is Adobe: India is a key innovation hub for Adobe – its biggest R&D location outside of its headquarters. Nearly 30 percent of the company’s research and development is centered in India. “We have probably grown faster in India than anywhere else in the world,” says CEO Shantanu Narayen.

At #8 is Google: The ability to download maps or YouTube clips for offline access, started in India before going global.

At #12 is Accenture: With 140,000 employees in India, Accenture recently opened a new Cyber Center in Bangalore, where clients, Accenture specialists and other industry experts from universities and beyond can uncover the next generation of security solutions and outpace cyber adversaries.

At #13 is Deloitte: In India, Deloitte offers a range of Audit, Risk Advisory, Tax, Consulting and Financial Advisory services across thirteen cities.

At #16 is Cisco: Cisco is moving beyond its core router and switching business into subscription sales and other sources of recurring revenue. These plans require robust hiring.

At #24 is McKinsey & Company: The company’s insights cover many topics from how India’s largest private bank fosters gender equality, to the state of the country’s private equity sector. More than 70 McKinsey India alumni have become CEOs.

At #25 is Oracle: The company has set up nine incubation centers to contribute to India’s booming startup culture and trains 500,000 students every year through the company’s education program.

 

 

May 21, 2017   No Comments

India Contemplates Opening Up Food Retailing

Foreign food retailers may soon be allowed to sell personal care products made in India up to 25 percent of their total merchandise sales. India’s Department of Industrial Policy and Promotion has for the first time endorsed this proposal. The idea behind the move is to encourage “organized” (mass market)  retailers to source goods made in India.

The excerpt below is from an interview that India’s  commerce and industry minister Nirmala Sitharaman had with the Economic Times:

Economic Times: On food retail, are you looking at allowing more products? Could we see some announcement soon?

Sitharaman: There is a lot of discussion on it. We are already talking about what is grown and [can be] value added in India. The food ministry is saying that you would need something more to attract consumers. He would want to buy other things as well, like cosmetics.

The Seattle-based online retailer, Amazon, sought government permission to enter the food retail business in India. It proposes to invest $570 million in over five years to sell third party and its own private-label food articles, sourced and packaged locally. Other applications received by the government in food retail are from Grofers and Bigbasket.

While a political consensus needs to be reached for further opening of the retail sector, the government is also examining the proposal of opening up Foreign Direct Investment for all goods manufactured in India.

Food Retail

May 8, 2017   No Comments