The eCommerce war have been a regular feature for a while now. Retail behemoths – Amazon, Flipkart and Snapdeal and squared off against one another to win over customers and they’ve not stopped at nothing.
They invested heavily in big discounts to acquire customers, hoping that the shopping experience builds customer loyalty.
They’ve spent big on advertising monies, trying to outshout one another in order to attain top-of-the-mind recall.
They’ve also actively sought investments from both domestic and international venture capital firms, with the promise of strong leadership, a solid business plan and a promise to survive through the uncertainty of future.
But historically internet businesses have often had a single dominant leader. Facebook has dominated social networking, while Google is the master of search. The competitors to both these companies have been left far behind.
If the same theory is to be applied to the eCommerce Wars in India, it makes it difficult for the industry to sustain two domestic (Flipkart and Snapdeal) and one international player (Amazon).
So, will we see a consolidation in the market in the coming years? Will one domestic player merge with the other to become a giant that will take on Amazon? Or will the global might of Amazon trample all domestic competition?
An ex-Snapdeal senior had a different take on the topic. He reasons that international convention cannot be applied to India. He believes India will have one dominant player, and many smaller players that will comfortably co-exist too.
Well, what is your take on this debate? Tell us by replying in the comments below.