A friend of mine once cribbed how after clicking on a pair of earrings by an online jewellery site at Facebook she saw the same pair of earrings on each and every site she logged on to. New to remarketing/retargeting, she felt so ‘haunted’ by the picture of those earrings that she just wanted to get rid of them- I helped her do that by clearing her browser history.
Not before I started wondering how this supposedly one of the most sophisticated algorithms rolled out by Google is helping e-marketers? My doubts were reaffirmed when I came across these findings by DMTI.
The online retail space in India is bubbling with activity at the moment. Predictions about a growth rate in excess of 20% in the coming few years go on to suggest that things couldn’t get better for those selling their wares online.
The big boys on the Indian scene have been happy with their turnover even while incurring losses, managing to stay afloat by lowering the prices of goods being sold by them. The question, however, is – how long can they sustain themselves on the investors’ money without showing them some results? How long can they afford to incur losses?
That was my first reaction when I first read the news about the leading Indian online retailer Flipkart raising more capital on a fresh valuation of $11 billion earlier in the day.
The buzz which was earlier a rumour has now been confirmed. Flipkart indeed is raising some more capital- making it their third round of funding this year. People involved directly in the deal have confirmed that they have got the final nod for an initial investment of $180 million from the Hong Kong-based investment firm Steadview Capital.
The Indian eCommerce industry which grew by 33% last year and saw goods and services worth $3.5 billion exchanging hands, is poised for bigger growth and touch new highs in the coming years. At a time when the eCommerce industry in India is really looking up, the giants, especially Amazon, in this field are not as excited as they should have been. They have reasons enough to be worried about.
The big question is: No matter what the hurdles in way of its growth and without touching the issue of government policy, can the online colossus afford to lose a market as huge and potentially profitable as India?
Venture Capital (VC) funding in Indian startups has registered a phenomenal Y-O-Y growth rate of 261% in 2014 and, scaling new heights, touched $3.86 billion, according to research firm Privco.
With internet penetration in India improving with every passing day (though still far short of global average) and a greater percentage of our population being active over the internet, the investors are eyeing India as THE market to watch out for! For a change, the huge population in the country, which was always seen as one of the major hindrances in the way of socio-economic growth, has now become the USP- attracting investors like it never has in the past.
No wonder then that investors and venture capitalists are flocking to the country and taking a keen interest in the developments here.