India’s e-commerce has become a target for foreign technology giants to acquire, and this trend is extending from online retail to physical retail
Companies such as China’s Alibaba and the United States’Amazon are bidding for Indian physical retailer Spencers.
With Walmart’s$16billion USD acquisition of Flipkart, India’s largest e-commerce site, the two giants in the US have become the leading e-commerce companies in India. In the face of WalMart’s advantages in physical sales, Amazon seems to be making up for its physical retail shortage.
Companies such as Amazon and Alibaba are bidding for Spencer, a grocery retail chain of the Indian RP-SG Group, which has already offered $400 million for a minority stake.
Amazon hopes to acquire a 30% stake in Spencer. The negotiations between the two parties have entered the final stage, but there have been differences in the valuation issue.
After WalMart’s acquisition of Flipkart, Amazon’s interest in Indian physical retailers increased, and the company and many retailers engaged in acquisitions or shareholding negotiations. Not long ago, Amazon acquired Indian retailer Aditya Birla’s 49% stake, and Samara Capital Company’s 51% stake, this retailer has an Indian supermarket chain called More.
The More supermarket chain is the fourth largest supermarket in India with 490 stores across the country.
Spencer currently has 138 stores across India and is preparing to increase 10 this year. However, the parent company RP-SG has always pursued a strategy of growing its business while ensuring profitability.
Amazon has long been the largest online retailer in the world, covering a large number of countries and regions. In the past year or two, Amazon has begun to expand in the physical retail sector. The iconic move was to acquire the US Whole Foods Supermarket for $13.6 billion and hundreds of retail stores in the United States.
In addition to acquiring existing physical retailers, Amazon has begun to set up unmanned convenience stores in multiple cities as a new retail approach. However, the technology of unmanned convenience stores is not mature, and it is still in the stage of small-scale testing.
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