Amazon.com is doubling down on India. Actually, in the interest of accuracy, Amazon is doubling and a half down, increasing its initial investment in the country from $2 billion to $5 billion.
Last year, India’s online sales exploded from $6.3 billion to more than $16 billion. That’s not bad considering its Internet connectivity can be spotty at best and most people don’t even have credit cards. Still, fast growth or not, it seems like an awfully big investment in what is still a small and relatively poor market.
Unlike in the United States, it can’t rely on the U.S. Postal Service, United Parcel Service Inc. (UPS) and FedEx Corp. (FDX) to deliver packages affordably. So, it’s finding networks to get stuff out to customers in a standard befitting the company brand. It’s even testing drones in particularly rugged terrains.In India, the cost of doing business is high. The lack of Internet and banking framework is dwarfed only by the poor physical infrastructure. Logistics is a nightmare, yet Amazon is dutifully building a network of many warehouses and distribution hubs.
Recently Amazon made headlines with very large investments in logistics infrastructure. It started with talks to lease 20 Boeing 767 cargo planes. Although that raised a few eyebrows, most dismissed it as the company simply ensuring it could move goods during peak holiday sales periods. The company then had its Chinese subsidiary register as an ocean freight forwarder. That’s a technical way of saying Amazon got into the overseas shipping business. Again, most put that off as a way to help move goods from Chinese suppliers during peak times.
But when you add in the new massive investment in India – then, the framework for a logistics business capable of efficiently reaching the fastest-growing consumer markets in the world starts to take shape. And it’s owned by Amazon.
Résumé en français
Amazon va poursuivre ses investissements en Inde, les passant de 2 à 5 milliards de dollars.
Ces investissements seront employés pour poursuivre l’établissement d’une infrastructure logistique propriétaire (entrepôts, centres de distribution).
Illustration en vidéo
Source de l’information
Article: Amazon.com, Inc.’s $5 Billion Investment In India Is Already Paying Off.
Sujet et source de l’image
Sujet de l’image: Entrepôt Amazon.
Source de l’image : Wikimedia Commons.
Lien externe utile
Page Wikipédia d’Amazon.