Amazon has invested an additional USD 260 million into its India business to prepare for the holiday shopping season.
The Dussehra and Diwali festivals held in autumn will kick-off the Indian shopping season, which will intensify competition between online retailers. Amazon has invested USD 2 billion in developing its Indian business in 2014 and has made Amazon Prime available in the country in 2016. The online retailer will launch its first Prime Day on July 10, 2017, which will coincide with other shopping and promotional events in the US and other markets.
During Prime Minister Narendra Modi’s visit to the US in 2016, the online retailer promised to invest an additional USD 5 billion in developing India’s tech and startup industry.
Although the US and China remain the biggest ecommerce markets in the world, India has the fastest growing online retail sector. A report issued by Retailers Association of India and Boston Consulting Group has found that the ecommerce market in India is expected to be at USD 50-55 billion by 2021 from the current USD 6-8 billion.