Google’s billion-dollar gateway to India
Google’s parent Alphabet may finally get the algorithm to reach out to its next billion users. This, through the Walmart route. According to reports, Google is set to shell out close to $1.5 billion in the $12-billion deal where Walmart is trying to pick a controlling stake in Flipkart.
KARAN CHOUDHURY reports
Google’s parent firm Alphabet may finally get the algorithm to reach out to its next billion users. Through the Walmart route.
According to reports, Google is set to shell out close to $1.5 billion in the over $12-billion deal where Walmart is trying to pick up a controlling stake in Flipkart. This deal would help Google gain “invaluable data’’ that would allow it to access users it has been wanting for its ambitious ‘Next Billion Users’ plan.
Customer data on millions of users Flipkartisnotonlythelargestecommerce player in the country, it is also the most trusted brand, according to market statistics. With this investment, Google would get a deep insight into customer-buying patterns. It is something that the firm has not been able to crack even after being the top search engine and launching a payments platform.
“Google would get accurate user data on what people buy. This will help them get knowledge on each and every customer and then they can push products accordingly,’’ an analyst with an international consultancy said. “After the merger withWalmart, Google would be able to create more than accurate customer profile.”
The company is providing free Wi-Fi services in a host of public locations and is also bringing in more people from the hinterlands online. “The entry into Flipkart would help Google co-relate the data from the first click to the final delivery of product. This kind of knowledge is invaluable, something that even Amazon does not have,” added the analyst.
A dry run for its e-commerce platform Google dabbled in online marketplace and even ran a major festive sale, similar to ‘Black Friday’ sales, called the Great Online Shopping Festival (GOSF). It started in 2012 and Google drew the curtains on it in 2015. The firm cited festive sales by Amazon, Flipkart and Snapdeal as a reason to stop GOSF.
“Today, the top three players have their own sales. India has many flourishing and successfule-commercecompanies and there are multiple deal days being hosted by various e-tailers delivering great value to shoppers. Users don’t have to wait for 12 months to get the best deals online. Small and medium businesses no longer have to wait for www.gosf.in to find customers from all across India,” the company said.
But with this investment, Google would be able to understand the nuances of working in the Indian online marketplace ecosystem.
Aligning with the biggies to take on Amazon Amazon is the common adversary that binds them all. While Walmart has faced immense competition on the home front from Amazon, which has now made inroads into bricks and mortar with ‘Whole Foods’ and plans to buy retail major Target, Microsoft has taken the fight with the Jeff Bezos-run company to the clouds.
Both Microsoft and Amazon Web Services are elbowing each other to get new customers, ranging from small, medium to major conglomerates. Industry experts believe they all hope to combine forces to take on Amazon on multiple fronts.