US-based e-retailer, electronic commerce and cloud computing giant Amazon launched Amazon India in 2013. Since then, the company has invested over $1 Billion to capture a pie in the rapidly growing e-commerce market in India. The war between Flipkart and Amazon further intensified over the years. Though Flipkart was able to maintain its dominance in the early years, it is slowly losing its ‘loyal customers’ to Amazon India.
Recent reports listed out that the American e-commerce giant is just 1% behind Flipkart’s GMV as of 2017. Previously the gap was 5% in 2016. Thanks to Flipkart’s acquisition of leading fashion brands like Jabong, and Myntra, the Indian tech giant managed to lead as a group.
While Appliance sales, groceries, and consumer electronics propelled Amazon India’s revenue, Flipkart had an extra edge when it came to smartphone sales and fashion.
Business forecasters predict that Amazon will take over Flipkart (a group of companies) by 2019 3rd quarter. According to a report, out of $19.6 billion market share, Flipkart held its position with 31.9%, while Amazon was just behind with 31.1%.
However, Flipkart dismissed these reports stating that it is the undisputed leader in the market with 60% of the sales.