IndiaCatalog.com
India News
Search Web Directory
News Home
Amazon vs Reliance: Jeff Bezos losing out to Mukesh Ambani as e-comm rules change
Posted on 6th February 2019
Amazon.com and Walmart’s plans to dominate India’s online retail landscape have been ambushed by Prime Minister Narendra Modi’s political priorities heading into a tightening election. The vote, likely to be held in or around May, has increased the influence of local retailers that lobbied for growth-crimping curbs on the US giants. On cue, India this month rolled out constraints on foreign e-commerce players, including Jeff Bezos-led Amazon and Walmart-owned Flipkart, which together control 70% of its online shopping. The tighter rules, aimed at protecting small traders, may end up benefiting the country’s richest man, Mukesh Ambani, who is building a homegrown competitor.

The BJP is still licking its wounds after being trounced in three key recent state polls and a year ago fighting an unexpectedly close contest in Gujarat — Modi’s home state. Among small businesses, which are a traditional support base, the government’s popularity has been eroded by 2016’s surprise note ban and the subsequent roll-out of GST.

The rules now bar Amazon and Flipkart Online Services from owning inventory, and require them to treat all vendors equally, throttling discounts and exclusives — a huge advantage to homegrown firms, including Ambani’s new venture. His Reliance Industries, which owns India’s largest retail chain and third-biggest telecom network, has the potential to evolve into a local version of Amazon or Alibaba, UBS said last month.

“Whether serendipitous or not, India’s tightened regulatory regime for online retailers is a huge win for Reliance with its new retail ambitions,” Greyhound Research CEO Sanchit Vir Gogia said, “This could be a field leveller for them.”

Ambani wants his consumer offerings — covering telecom, fibre-to-home broadband, media and entertainment and retail — to contribute nearly as much to the conglomerate’s overall earnings as its bread-and-butter energy and petrochemicals businesses.

He’s fresh from disrupting the nation’s telecom sector, which he entered in 2016 with services so cheap that rivals have quit, merged or gone bankrupt, including a carrier controlled by his younger brother. On the back of that success, he last year unveiled plans to create a model that combines Reliance’s consumer offerings into a “hybrid, online-to-offline new commerce platform.”

Analysts at UBS predict Reliance can gain market share in new-age retail given its starting point of 280 million telecom subscribers, a broadband offering, extensive content and a web of 10,000 stores nationwide. The company also wants to partner with India’s 12 million mom-and-pop shops to create distribution and delivery centres.

Reliance resembles Alibaba in its ability to offer bundled services in a fast-growing, fragmented market with low online penetration, according to UBS. Representatives for Reliance, Walmart, Amazon and India’s commerce ministry didn’t respond to requests for comment.

Meanwhile, the US retail giants are being curbed in a market where they have committed billion of dollars and, till recently, looked to have already won. Both will have to cut back on cash-back payments and discounts — a sore point for smaller sellers, who accuse the pair of predatory pricing.

Flipkart’s losses may rise 20-25% following the changes, according to Morgan Stanley, which said in a report that it didn’t think Walmart was considering walking away from the investment. Reliance will probably use the opportunity posed by the government’s tighter rules to make a “grand entry” into e-commerce, said Praveen Khandelwal, national secretary general for the Confederation of All India Traders, a lobbying group that had threatened political repercussions if the February 1 rollout was delayed.

Related Companies: Amazon India   Reliance Industries Limited (RIL)   

Other Latest News
L&T Construction wins over ₹7,000-crore contract for building major airport
Posted on 18th February 2019
New Delhi: Infrastructure major Larsen & Tourbo (L&T) Monday said its construction arm has won a contract for building a major airport.

The engineering and construction company, however, did not provide the exact value of the contract; but specified that as per its classification, the mega project is in the range of over ₹7,000 crore.


Yes Bank shares falls sharply as RBI censures selective disclosure
Posted on 18th February 2019
Mumbai: Yes Bank Ltd. fell after India’s central bank reprimanded it for selectively revealing a “confidential" report by the regulator that led to a 30 percent surge in the lender’s shares Thursday. The regulator called the disclosure a “deliberate attempt" to mislead the public.

Air India Express launches international operations from Surat
Posted on 18th February 2019
Surat: Gujarat's 'diamond city' Surat has made it to the international aviation map with the first Air India Express flight arriving here carrying 75 passengers from Sharjah, the airline said on Sunday.

The maiden Air India Express flight IX 172 from Sharjah touched down atthe Surat airport at 11.30 pm on Saturday with 75 passengers on board the Boeing 737-800 aircraft, the airline said in a statement.


Punjab National Bank in better state, but momentum is still soft – reduce holdings
Posted on 18th February 2019
Punjab National Bank (PNB), post three quarters of muted profitability (losses), reported PAT of `2.5 bn in Q3FY19. This was led by better-than-expected asset quality even as business momentum continued to remain soft.

(a) slippages were restricted at sub-Rs 40 bn (3.7%). This, with better recovery, led to dip in GNPL; (b) that said, business momentum continued to be soft (albeit improving), which with sustained NIM pressure restricted core operating profitability; and (c) improved coverage led to dip in NNPL & sequential traction in domestic growth was encouraging.


The Tata way: Cyrus Mistry or N Chandrasekaran, it’s all about crown jewel TCS
Posted on 18th February 2019
Two years after a change of leadership at the Tata Group, it is abundantly clear that whether it’s Cyrus Mistry or Natarajan Chandrasekaran, cleaning up after Ratan Tata is not easy. Today, the sprawling conglomerate is even more about TCS than when Mistry left it.

The software major accounts for 73% or nearly three-fourths of the combined market capitalisation of ten top 10 companies; this share was just 59% in February 2017, when Chandra took over the reins at the group as chairman, Tata Sons.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Amazon vs Reliance: Jeff Bezos losing out to Mukesh Ambani as e-comm rules change
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Amazon vs Reliance: Jeff Bezos losing out to Mukesh Ambani as e-comm rules change

Most Read News

At least 37 CRPF personnel killed in suicide blast in J&K's Pulwama, Jaish-e-Mohammed claims responsibility

RCom arm Reliance Realty gets nod to develop DAKC into Fintech Centre

BSNL solidifies worker benefits, plans VRS package

Mahindra & Mahindra hits 52-week low on tractor guidance cut; stock down 3%

Bharat Dynamics soars 16% on robust December quarter results

More India News

Photo Gallery

Sumanth Ashwin(10 Images) Sumanth Ashwin
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement