It’s been a year since Amazon acquired Whole Foods with its 400-odd stores at the time. Although the grocery store is (currently) reserved for a miniscule population (the wealthy), established players in the US shuddered. Many scurried to expand their online and brick-and-mortar presence (and supply chain, given Amazon’s logistics expertise).
Closer to home in India, Amazon has been in the news with talks of strategic investments. If the company is able to pull off the three deals they are currently pursuing, they will have over 1,700 physical stores in the country. This comes on the heels of Walmart’s recent acquisition of a majority stake in FlipKart. Amazon will no doubt give its competitors – the likes of Walmart-Flipkart, Paytm Mall-BigBasket, Reliance, Tata – a run for their money.
According to a report by Nasscom and PwC, India’s e-commerce market could potentially grow more than fourfold to $150 billion by 2022. With the Internet and e-commerce changing lives in India, how might Amazon alter the country’s FMCG landscape, a stable, high-moat business?
|E-commerce business models in the FMCG sector
A leading FMCG company in India wanted to expand their presence in the e-commerce space, and hence wanted to
– establish the business models of successful e-tailers
– and the role played by each player in the supply chain
In-depth interviews with accomplished and upcoming e-tailers helped map the supply-chain of the sector, and provided insights on how other FMCG firms were approaching e-commerce.
Information about the competitors’ sales structure, business model, revenue sources, cost structures & profitability, and growth projections was captured.
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