India Electricity Supplier Snapdeal To Build The Local "Alibaba" Ali Will Be $200 Million Stake.

The potential of e-commerce channels is close to 30%, which is equivalent to the Chinese market and has become an indispensable channel.

India

Platform Snapdeal is being built into the local version of India.

"The promoters are not lack of Taiwan and mainland enterprises.

In August 18th, 02038.HK, a listed company of Hon Hai, announced that it would invest $200 million in Jasper Infotech Pvt through its subsidiary Wonderful Stars. The company owns and operates Snapdeal, a India electricity supplier giant. After its stake, Fu Chi Kang will get a 4.27% Snapdeal stake.

Another electronic giant Alibaba has also been confirmed that it will get a 4.1% stake in India electricity supplier Snapdeal in the near future with $200 million.

In fact, as early as March this year, Narendra Modi, Prime Minister of India, held a more than 50 minute meeting with Ma Yun in the prime minister's office, covering e-commerce platforms, payment and integrity system, social logistics, cloud computing and so on.

In many other fields, we hope to apply its successful experience to the "digital India" plan.

"Unlike the mature countries in Europe and the United States, electricity providers tend to develop faster in emerging countries, because the cost of logistics manpower is low, and the cost of storefront sales will be saved."

IDC, senior analyst Yan Jun Meng, who is responsible for the tracking report of China's mobile phone market, said that the potential of India's e-commerce channel is close to 30%, which is equivalent to the Chinese market and has become an indispensable channel.

One of the local electricity giant Flipkart executives has said that India can also create a $100 billion electricity supplier, and Kunal Barr, founder of Snapdeal, is a feverish admirer of Alibaba.

Digital India's "star making"

IDC's data show that before 2013, India's electricity supplier channels accounted for only 3% of the total sales channel, and the number of public channels was above 90%. Besides the low penetration rate of credit cards, consumers' buying habits and bad networks had made the development of the electricity providers seem unsuccessful. It is hard to imagine that even in airports or five star hotels, it is not easy to find a free Internet.

But today, like the electricity market in China 10 years ago, the India electricity supplier is also developing rapidly through continuous absorption of capital.

Since Amazon announced an additional $2 billion investment in India in May last year, Facebook founder Zuckerberg and Microsoft CEO NADELLA have visited India to find business opportunities. Foxconn head Terry Gou has visited India market in recent years and invested in India from various fields.

"We are happy to invest in Snapdeal, which will promote Fu Zhi Kang's landing on the vision of" digital India ".

Tong Wenxin, chairman of the board of directors of Fu Zhi Kang group limited, pointed out that India is an extremely important business opportunity for Fu Zhi Kang, not only experience accumulation, but also one of the plans for the company to build intelligent manufacturing systems, develop innovative products and solutions for customers with big data.

Snapdeal is currently one of India's largest online trading platforms, especially sales of mobile devices, which occupy most of its online trading.

And the top five customers of Fu Zhi Kang group are many domestic mobile phone manufacturers such as HUAWEI and Xiaomi.

Hon Hai, an Taiwan parent company of Fu Chi Kang, told reporters that cooperation with Snapdeal would have the opportunity to sell the brand of Fu Zhi Kang OEM.

These movements seem to correspond with the "digital India" plan promoted by Prime Minister Modi.

In early July this year, Modi launched the "digital week" activities in the capital New Delhi, including the investment of 18 billion US dollars to 250 thousand villages network in 2019, and the net import of digital and electronic products in 2020, creating over 100 million jobs.

Kunal Barr, co-founder of Snapdeal, believes that investment projects will promote Snapdeal to establish the most influential digital business system in India, and is in line with the strategic move of India.

By the end of May this year, the total value of goods sold on the Snapdeal online market was about $3 billion 500 million, compared with $1 billion in August last year.

Snapdeal is currently valued at $2 billion and is the fourth most valuable start-up company in India. It is considered by the local media to be the company that has the opportunity to evaluate China's Alibaba in the future.

Worries under the electricity supplier's draught

In the eyes of the outside world, Snapdeal has caught up with the good opportunity to catch up with the rapid growth of India's electricity supplier market.

At present, Snapdeal has 6000 employees, compared with 1300 in August last year.

However, many manufacturers have shown a cautious attitude towards the future development of the electricity supplier's draught.

Take the most popular category mobile phone products on the electricity supplier as an example, it is still a product dominated by offline channels.

"Consumers in India have a lot of family time. They like to go shopping offline and like to see objects."

Jinli mobile, a national contractor in Jaipur, India, said that the different regional markets in India created complex situations. Therefore, the demand for the product line of the electricity supplier should be very wide. If it is only rely on the electricity supplier to solve all the needs, it is impossible, but once the business channel is lengthened, there will be channel risk.

"There is also the problem of after-sale centers. The problem of mobile phones needs to be dealt with by the after-sales center. The channel of e-commerce has no advantage over offline."

The above contractors said they had more than 80 municipal agents in northern India, covering the towns surrounding Jaipur. In his view, the electricity supplier channel has potential in the future, but the turning point is not in recent years.

Zhang Wenxue, the director of Kivu, a domestic mobile phone manufacturer who has ploughed into the India market, said that the proportion of electronic payment in the India market is not high. Consumers do not want to write credit card information on the Internet. The proportion of consumers without credit cards may exceed 60%.

For the India government, the construction of "digital India" is also facing great challenges.

In 2011, the former government proposed the establishment of an optical fiber network linking the whole country, but the progress was slow.

In the first quarter of this year, the average net speed in India ranked 115th in the world. As of the end of April, only 100 million of the nearly 1 billion 300 million people in India were using broadband services.

However, we can see the determination of Moody's government and the efforts of enterprises.

India's e-commerce platform, such as Flipkart, is also stimulating consumers' interest in online purchase through cash on delivery.

At the beginning of this year, Alibaba invested $570 million in India mobile payment settlement One 97 group and acquired 25% of the latter. The core asset of One 97 Paytm has nearly 30 million mobile wallet users in India.

"The continuous improvement of payment tools is expected to promote the development of e-commerce in India."

Yan Chao Meng said.