AFTER AMAZON, FLIPKART, RELIANCE AND TATA NEU, INDIA’S $133 BILLION E-COMMERCE MARKET MAY BE TOO SMALL FOR A FIFTH PLAYER

• India’s e-commerce space may soon run out of space to accommodate more players if another big player tries to make an entrance, according to a report.

• Bernstein argued that India’s e-commerce sector would not be an “all-winner” opportunity.

• The four biggest players in the segment are Amazon, Flipkart, Reliance and Tata Digital.

Every major Indian company is chasing the e-commerce space, which is expected to have half a billion users by the end of this decade. Be it Amazon, Flipkart, Reliance JioMart or Tata Digital’s latest super app, Tata Neu, everyone has spared no effort to dominate the demand and the minds of customers.

Now, a new report from JM Financial has revealed that we may soon run out of space to accommodate more players. The Indian financial services company noted that the entry of another big player into the already “crowded” e-commerce space could instead lead to further consolidation, which would be detrimental to smaller players trying to carve out a place for themselves. .

“Small ‘me too’ players are likely to lose. Additionally, we see these big players continuing their search for specialized e-commerce players to fill gaps in their portfolio to maintain their leadership. Additionally, we might see them acquiring e-commerce businesses enabling, for example, logistics, data analytics, etc. support organic growth,” the report adds.

Meanwhile, Bernstein argued that Indian e-commerce would not be a “win-win” opportunity due to low e-commerce penetration across different categories and customer segmentation. The private wealth management firm noted that e-commerce is the largest segment of the internet in India and is expected to grow more than fivefold to $133 billion by 2025.