Watch out Indian Etailers, Japan’s Rakuten is coming soon!
Exciting times are ahead for the Indian ecommerce industry. AfterAlibaba, it is reportedthat Japan’s ecommerce leader Rakuten will enter India’s online turf.
It will join the league of established players, homegrownFlipkart,Snapdeal, Shopclues&Paytm, US-basedAmazon&eBay, and China-basedAlibaba.
The company’s representative refused to confirm the news but didadmitthat,
“India is a vibrant growth market and a great source of talent and ideas for us at Rakuten. We are always interested in new global opportunities for growth but we don’t have any comments on developments in India at this time.”
Rakuten’s entry was anticipated
IOS had reported how the newFDIguidelines will make iteasy for international playersto explore online retail in India. And quite expectedly, Chinese Alibaba and JapaneseRakutenhave decided to jump in right away and take advantage of 100% FDI in marketplace format.
After all, who would want to losefastest growingecommerce market?
Groundwork has already begun
People close to the development have revealed that Rakuten has started laying foundation for its ecommerce portal in India. The company has set up an office and started poaching managers from existing leaders Amazon and Flipkart.
When going gets tough
Will the tough get going?
Online buyers, sellers and industry watchers are waiting with bated breath to experience big transformation the year 2016 is going to bring. But for the etailers, it is going to get tough. Alibaba’s 2016-scheduled entry is alreadychanging existing ecommerce leaders’strategies.
Naresh Kumar Dhanuka, an online seller summed up his sentiments about Alibaba’s entry inthis comment,
“This is the good news for seller like us maintaining the 4.4 rating continuously on all major ecommerce channel. Fed up of more discount and more discount policy. Need respect for our product quality, fast shipment & zero cancellation and also need reasonable margin for our efforts, which we are not getting due to durty game going on. (sic)”
With Rakuten joining soon, what else will change? How Flipkart, Amazon, Snapdeal and others plan to face these new international players? Sellers, let us know if you are excited about this new development.