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On June 8, American e-commerce major Amazon announced an additional $3-billion investment in India, making clear its intention to win in the country. This throws up a massive challenge for all homegrown e-commerce companies, among which Snapdeal could be hurt the most.
“Snapdeal has been having an identity crisis for the last couple of years,” said Sanchit Vir Gogia, Chief Futurist, Founder and CEO of Greyhound Knowledge Group. “Flipkart has the advantage of a strong logistics infrastructure that they have developed in-house. And Amazon has long years of experience and deep pockets. But Snapdeal has not solved the logistics problem and it will suffer because of the lack of ecosystem.”
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