Indian e-commerce has such potential because it can bring three changes more profound than convenience and keen prices. The first is faster financial development. China already provides one example. Alipay, an arm of Alibaba, overcomes mistrust between buyers and sellers by holding on to customers’ money until they have safely received their goods.
E-commerce firms could help overcome India’s ropy infrastructure and vast geography. India is a better template for the e-commerce battle in other emerging markets. Its logistical woes provide a test of firms ingenuity. If they find a way to deliver goods profitably there, they may succeed elsewhere. If they falter, their stumbles will provide lessons. That is all the more likely because India’s e-commerce is so international. Naspers, a Flipkart investor, backs ventures in Nigeria, South Africa and Egypt, among other places. E-commerce in India is a local battle for customers, but it is also a battle for the future.
BATTLE OF THE E-COMMERCE INDUSTRY
(Flipkart –owned) Myntra said it has acquired Jabong from Global Fashion Group for an undisclosed amount, a move that will mark further consolidation in India’s booming e-commerce industry. No financial details were disclosed.
Myntra, which itself was acquired by Flipkart in 2014 in an estimated Rs 2,000 crore deal, will have access to a combined base of 15 million monthly active users.
With the acquisition of Rocket Internet’s Jabong for $70 million, Flipkart now has almost over 50% of India’s fashion retail market. The fashion and apparel segment not only enjoys the highest gross margins globally, but is also among the fastest-growing segment among all e-commerce businesses.
Flipkart CEO Binny Bansal sent a letter to all the employees for and for welcoming Jabong to the group of Flipkart, Here’s the text of the letter sent by Bansal.
I am happy to inform you that our group company, Myntra, today acquired Jabong from Global Fashion Group, thus creating India’s biggest fashion shopping destination. The acquisition of Jabong further strengthens Flipkart Group’s position as the undisputed leader in Fashion and Lifestyle segment in India.The acquisition of Jabong further strengthens Flipkart Group’s position as the undisputed leader in Fashion and Lifestyle segment in India.”
Further Said by him “Fashion and lifestyle is one of the biggest drivers of ecommerce growth in India. We have always believed in the fashion and lifestyle segment and Myntra’s strong performance has reinforced this faith. This acquisition is a continuation of the group’s journey to transform commerce in India. I am happy that we will now be able to offer to millions of customers across our 3 platforms even more wider variety of styles, products and a broad assortment of global as well as Indian brands.”
Jabong is among India’s major fashion multi-brand e-store with more than 1,500 on-trend international high-street brands, sports labels, Indian ethnic and designer labels and over 1,50,000 styles from over a thousand sellers.
No official statement was available from Jabong.
Some of global brands that will be exclusive to both the platforms include Dorothy Perkins, Topshop, Tom Tailor, G Raw Star, Bugatti Shoes, The North Face, Forever 21, Swarovski, Timberland and Lacoste.