While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong

Amazon Prime India

As has been expected for some time now, Amazon Prime launched in India.

NDTV Gadgets360.com:

Amazon Prime offers unlimited one-day and two-day free shipping
Amazon Prime will cost Rs. 499 for the first year after a 60-day free trial
After the inaugural discount is over, Prime will cost Rs. 999 per year

For comparison, INR 999 are € 13.54 or $ 14.89.

Prime delivery options are divided between 20 cities and the rest of the country:

Amazon Prime delivery benefits will be available to customers in 20 cities across India. For deliveries to cities not yet eligible for one-day or two-day delivery, members will receive free delivery with no minimum purchase.

Video is coming later. NDTV Gadgets360.com:

If you are wondering what Amazon Prime includes in India, here’s what you need to know. As of now, Prime comes with unlimited one-day and two-day delivery with no minimum order size and early access to some deals on Amazon, as well as some Prime-members only deals. Other benefits available to Prime members in the US like Amazon Video and Amazon Music – the shopping giant’s video and music streaming services respectively – are not available in the country yet, though Amazon says the former “is coming”.

Amazon needs video in India to make Prime a true game changer.
NDTV Gadgets360.com:

Amazon rival Flipkart offers Flipkart First at Rs. 500 per year, which provides similar benefits like free in-a-day delivery, early access to deals, and special member-only deals, but the service hasn’t evolved much since it was launched in 2014. With Video, Amazon will steal a march over its rival, so it will be interesting to see how Flipkart responds to this move.

Still, even with a Prime with video, doubling the amount Flipkart charges might not bring Amazon the necessary boost in India. Hence, I doubt Amazon will in fact increase the ‘introductory’ price of INR 499 after that first year to INR 999. (This feels more like a fake discount. Charging double the price in a country where a lot of customers are price sensitive and, on top of that, within a market that is going to remain a growth market for the forseeable future, that wouldn’t make much sense. This pricing just creates a sense of a bargain for the first year. I suspect, Amazon will keep matching Flipkart First’s price, while adding video streaming to the bundle, until it becomes the market leader. As long as Amazon doesn’t become the market leader, the price will not increase.)

Meanwhile, as has been rumored for a while, Kinnevik and Rocket Internet sold Global Fashion Group’s Jabong to Flipkart-owned Myntra.
TechCrunch:

Finally, Rocket Internet has managed to sell Jabong, its fashion e-commerce site in India, after more than a year of speculation. Myntra, the fashion portal which itself was acquired by Flipkart, has stepped up and bought its rival in a $70 million deal announced today.

The deal is all in cash but it is not completed yet, it is expected to close within Q3 2016.

Myntra and Jabong together are a huge force. The Times of India:

Myntra, which itself was acquired by Flipkart in 2014 in an estimated Rs 2,000 crore deal, will have access to a combined base of 15 million monthly active users.

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7 comments

  1. […] While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong […]

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  2. […] While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong […]

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  3. […] While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong […]

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  4. […] While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong […]

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  5. […] While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong […]

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  6. […] Global Fashion Group has been selling off parts of its business for some time now. The group sold its operations in Thailand and Vietnam. The Indian fashion business Jabong got sold to Flipkart-owned Myntra. […]

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  7. […] While Amazon Launches Prime in India, Flipkart-Owned Myntra Buys Jabong […]

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