Friday, 1 August 2014

The Online Game Of Investments

What are you looking to buy this season? Well, there is end of season sale all over; you should grab something for yourself too. Which website do you prefer buying something for yourself? Well, we all are aware of those attractive online deals present on various websites which are really pocket friendly. The retail business in the physical shops is going down due to this, since consumers have the comfort and the liberty to buy their favorite products at the best deals from their homes. People are now feeling more comfortable sitting at home and buying products online. Take it from a cell phone to simple grocery materials for daily households.

Though there are consumers which prefer to visit the shops to actually feel the product physically and then buy, since they fear that the product they will order would be of a genuine quality. Still the online business has been shooting up since the day it was originated. Talking about, it has been a one of a kind online webstore which offers all new products before it reaches the market. To mention one; Motorola new series with the Google was first introduced on Flipkart. Due to its extremely economically friendly price the bookings for the phone was humongous. Though Motorola was not to be seen in the market for about more than six months, a tremendous demand for the phone was seen among the consumers. Looking at the progress of Flipkart, Amazon India has also announced a huge investment of $2 billion to grow their business in India.  Flipkart announced an investment of $1 billion. That’s a whole lot of money!! This Seattle based internet entrepreneur has a vision to record its sales over Rs. 6000 crores in just one year.

Mr.Arvind Singhal, the chairperson of the retail advisory Technopak has said. "They want to be seen as a leader, not as a challenger,” Flipkart, which is now also backed by Singapore's sovereign wealth fund GIC in addition to existing investors like South Africa's Naspers and Tiger Global Management who led the latest round of funding, has now received over $1.7 billion in risk capital funding.

Bezos wants to assure customers that they want to survive in this dynamic market and also compete his rivals, specifically Flipkart. "It is abnormal for Bezos to talk about numbers. He never talks about investments or top line. This shows that how amazon looks forward to do business in India. This is completely new," said a senior executive at a consumer internet company who until last year was employed at Amazon. "He wants to show that if Flipkart spends one dollar, Amazon will spend two."

As of now Amazon is giving a head to head competition with Both these online retailers have shown more or less same amount of sales of about Rs.3600 crore. However they both perceive a larger amount upto $1 billion in the latter half of the year. Whereas, Flipkart has already touched base of $1 billion of sales and shall reach $3 billion in this year. This shows how Xiomi Mi3 is booming up the online store. Though many other online stores are giving a huge discounts to meet the targets.

Well, it is also believed that The Maestros of business in India like the Tata and the Reliance are going to step into the online business soon. The game is broadening every month and there are more and more product genres which are yet to hit the online business in India. Don’t worry the shops won’t shut soon!!!

Written by: Fahad Patel

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