Amazon introduced its Prime service in July of 2016 & E Commerce changed. Since then we’ve seen evidence of the customer delight that keeps users coming back. While the number of prime subscriptions bought in India is unknown — evidence of its effects are plain to see.
Indian consumers have traditionally been driven by discounts but perhaps we’re seeing the emergence of a segment of the market that’s willing to pay for service and values instant gratification over savings.
With the launch of its prime video platform (available at Rs. 500/ year as opposed to Netflix at Rs. 650/ month) Amazon is trying to further entrench itself in its customers lives. Offering cheap subscriptions for video content is simply a Trojan strategy that helps Amazon familiarize users with its prime offering.
We’re not sure how local players will compete with such a sophisticated multipronged strategy. Unlike Amazon their core businesses aren’t cash generative and we’re seeing increasing evidence of investor confidence eroding across the spectrum. Expect 2017 to be an interesting year for venture.
Thanks for your time,
Ashish
- Team KG
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You can reach me on ashish@kalagato.com
