Amazon may cut prices in bid to grow market share in India
BENGALURU: After struggling to close the gap with Flipkart Ltd, Amazon plans to cut prices and increase spending over the next few quarters to increase its market share in the company’s most important international market, three people familiar with the matter said.
Amazon is simultaneously competing with its domestic rival Walmart, the world’s largest retailer, to buy a majority stake in Flipkart.
Since the end of 2016, Flipkart, which was then on the verge of losing the top spot to Amazon, has consistently maintained a slen- der lead over the Us-based company despite spending less. Flipkart’s ability to maintain its lead in smartphone sales, which comprise roughly half of all online retail in India, has been central to the company’s turnaround.
Now, Amazon plans to drop prices of smartphones to increase its market share, the people cited above said.
Noor Patel, director of smartphones category management at Amazon, said that sellers decide the pricing of products on the company’s platform.
“We continue to seek out opportunities to make smartphones more affordable for our customers. Our exchange and EMI schemes have gained momentum with customers. We are working closely with brands to enable them to reach out to customers across India,” Patel said through a spokesperson.
He said that Amazon has significantly expanded its exclusive smartphone selection to more than 180 products.