India'S Fashion Electricity Supplier Industry "Forced" Small And Medium-Sized Enterprises Have No Way Out.

Tofler, the market consultancy, recently released.

The revenue report of India in the 2016 fiscal year (15 -16 March March) reported that the loss of the company in the 16 fiscal year doubled to 35 billion 720 million rupees in the 15 fiscal year, and its main competitor Flipkart was 23 billion 60 million rupees in the 2016 fiscal year.

The main reason for the loss is burn subsidies, while big companies compete for smaller ones.

Electricity providers are also accompanied by burn subsidies, making the loss of the small and medium-sized platforms bigger, and the loss of the platform is even 19 times higher than the 15 fiscal year.

Against this background, some experts pointed out that India fashion.

The industry has left little room for small and medium-sized players.

Comparison of revenue between Amazon India and Flipkart

According to Tofler's data, Amazon India's profit in the 16 fiscal year was 22 billion 750 million rupees (a profit of 10 billion 220 million rupees last year) and a loss of 35 billion 720 million rupees (a loss of 17 billion 240 million rupees last year).

Against Amazon's rival Flipkart, the company made a profit of 19 billion 520 million rupees in the current fiscal year, less than Amazon and a loss of 23 billion 60 million rupees.

The main reason for the loss is that Amazon and Flipkart are competing for the first place in the market, increasing investment in the market, discount subsidies and infrastructure construction.

At the beginning of this year, Amazon promised to invest 35 billion rupees to India, so far it has invested 5 billion US dollars.

By the third quarter of this year, the loss of Amazon's international business was US $541 million, and India's market loss was the largest.

In this case, Amazon is not worried about India.

Amit, vice president of the company, said that at the moment, Amazon India is more concerned about the increase of market share. It is not difficult for the outside world to make money in the field of electronic commerce without worrying about the recent profitability.

In order to maximize market size and increase user experience, it is necessary to increase investment in technology and infrastructure.

India's electricity supplier industry is still at an early stage of development, and we are confident of our future development.

In response, SatishMena, an analyst at ForresterResearch, a market research firm, said: "Amazon is now in a comprehensive customer acquisition mode, and its competition with local businesses will continue in 2017.

So far, the market share of India's electricity supplier is tilting to Amazon, and the market share of Snapdeal and Flipkart is decreasing.

Now let's take a closer look at where Amazon's biggest expense is. The biggest proportion of these expenses is advertising and discount promotions, which has risen 54% to 216 billion 300 million rupees this year.

Spending on legal services is also huge, and legal spending has risen by 136% to 52 billion 200 million rupees.

In addition, the cost of personnel has doubled to 34 billion 800 million rupees.

Unlike local companies like Flipkart and Snapdeal, Amazon is an international company that can mobilize global resources to compete with local businesses.

The India government rarely subsidized local businesses, which led to Flipkart and Snapdeal fighting only through financing and Amazon.

Recently, Flipkart and the local Internet platform Ola have appeals to the government of India. They say they have been unfair competition from foreign companies and hope that the government will intervene.

Two strong competition, small and medium-sized enterprises have no way out.

As we all know, the competition in India's electricity supplier is fierce. In order to maximize customer and market share, all platforms offer discount subsidies to consumers.

Even in the more profitable fashion e-commerce industry, it is precisely because of the giants' crazy burn subsidies, forcing Voonik, Zivame, Koovs, Lime-Road, StalkBuyLove and Craftsvilla and other smaller fashion business providers are also forced to provide high discount with them, which has led to a significant expansion of the platform's deficit.

According to the world clothing and shoe net, as of March 2016, the loss of the above 6 Fashion platforms was 5 billion 150 million rupees, significantly higher than last year's 1 billion 340 million rupees.

Among them, the loss of Voonik increased by 19 times than that of last year, compared with the deficit side, the profit growth was not significant.

The total profit of the six platforms has doubled to 2 billion 300 million rupees.

The loss of small and medium-sized platforms is not just about money and market share. Just a few months ago, India's fashion electronics industry took the biggest acquisition in history.

Flipkart's fashion business platform Myntra acquired India fashion electronics supplier first to Jabong, making Flipkart occupy the 70% market share of India fashion electronics industry at one fell swoop.

And insiders said that Amazon India, Snapdeal, Shopclues and other industries accounted for 20% of the players, leaving 10% of the market space for other platforms.

HarminderSahni is the co founder of India fashion business platform WazirAdvisors, whose platform has ended this year.

He said: "once investors realize that the market structure has been fixed, they will not invest in it, and the outcome of our small company will only perish, and those who will survive are big companies."

In India, there are many India fashion platforms that he encountered.

Although many small fashion business platforms are actively pforming, Tata Group, reliance group and future group India giant conglomerates are also starting to get involved in online sales.

The space left for small and medium-sized platforms will be further compressed. In 2017, India's fashion business will be a reshuffle year.

More interesting reports, please pay attention to the world clothing shoes and hats net.