By CCN Markets: Forget New York City. Amazon just cut the ribbon on its real HQ2, and it’s located 8,000 miles away.
Hyderabad, the largest city in India’s state of Telangana, is now the home of the largest Amazon campus anywhere in the world. The 1.8 million-square-foot office park – which is the first that Amazon owns outside the United States – sits on a piece of land measuring three million square feet.
— Amazon India News (@AmazonNews_IN) August 21, 2019
Low online retail penetration
According to Bloomberg, Amazon’s Hyderabad campus will house approximately 15,000 workers. This is part of the online retail giant’s plans to expand in the world’s second-most populous country, which boasts a young population and an underdeveloped e-commerce sector.
Amit Agarwal, Amazon’s country manager for India, said that online retail penetration currently languishes in the low single digits:
“E-commerce is so small in India relative to the total consumption, less than 3 per cent.”
Traditional retail, in contrast, boasted a penetration level of 88 percent as of 2017.
According to the Times of India, fewer than 100 million Indians have shopped online, even though 500 million have internet access. Fewer than 50 million shop online regularly.
But by 2020 the number of online shoppers in India is expected to increase to 200 million, presenting high growth opportunities for e-commerce firms.
Compared to India, Amazon’s home market of the United States is relatively saturated, with the online retail market taking up nearly 13 percent of total retail sales.
Amazon Launches Hyderabad HQ2 to fight off competition from rival Walmart
Besides online retail operations, the Hyderabad campus will also be involved in building global products for the mother brand, including Alexa and Kindle.
The opening of the “Asian HQ2” comes at a time when competition between Amazon and Walmart has intensified in India.
Following Amazon’s success with Prime Video in India, which has been extended to producing local film and TV content, Walmart is planning to try the same trick.
Per The Verge, Walmart is planning to unveil a new video streaming service for Flipkart Plus subscribers. Walmart acquired Flipkart last year at a price of $16 billion.
As of 2017, Flipkart was the ninth biggest global marketplace by sales, per Internet Retailer. Amazon ranked third.
By CCN Markets: India’s largest bank, the State Bank of India (SBI), has announced an initiative yesterday in which the state-owned financial institution seeks to eliminate debit cards to promote digital transactions. In light of the SBI’s ambitious project, it has now become clearer that India’s last month plans to ban all crypto assets is total nonsense. ‘Let’s digitize payments, but we should…
By CCN Markets: Walmart is bucking the trend by boosting its fiscal 2019 earnings outlook after reporting strong second-quarter sales. The bullish projections and the rise in Walmart stock this week underscore that the retail giant is unfazed by mounting recession fears and the US-China trade war. Walmart’s same-store sales for the second quarter ended July 31 rose 2.8%, beating analyst…
Argentine markets suffered what can only be characterized as a bloodbath on Monday, subjecting the peso, bonds, and local stocks to brutal declines. The reckoning spread beyond the shellshocked country’s borders, and one Nasdaq-listed firm dubbed the “Amazon of Latin America” suffered a merciless correction. Populist Alberto Fernandez Creams Mauricio Macri in Argentine Primaries Argentina’s stock…
An Australian citizen who ran an international crypto Ponzi scheme will face justice after police in India finally arrested him – but not before he defrauded victims out of $28 million. ‘Hybrid crypto’ with low risks and high returns India’s Special Task Force (STF) arrested Sydney resident Harpreet Singh Sahni in a hotel near the Delhi airport, the Times of India reported on Tuesday. According…
Edward Snowden tweeted a warning to Amazon’s AWS division this morning regarding a recent decision to ban all of Iran from the platform. Amazon kicks Iran off AWS, Snowden responds An American company, Amazon is forbidden from doing most types of business with the hermit kingdom of Iran. The US government has taken this ban so seriously that they have even added certain known Iranian Bitcoin…
Cowen, a veteran analyst and research group, believes that Walmart will face less political opposition than Facebook if and when it decides to launch its own cryptocurrency. Government Likes Walmart Better Than Facebook? Walmart revealed last week that it was looking into the creation of a stablecoin, via a patent filing. The digital currency variant could have amazing possibilities, given…