Amazon breaks into India online retail market

U.S.-based online retailer Amazon.com announced a new Web site to cater to Indian consumers even as it looks to grab its share of the country's US$10 billion e-commerce retail market, according to the Wall Street Journal.

In a report on Thursday, the e-commerce giant announced its entry into India with the launch of its new site, Junglee.com, which will enable consumers there to browse for products and then purchase these either online or in person. The new site will offer more than 10 million products from over 14,000 Indian and global brands, which include The Bombay Store, Bata India, and Reebok, it added.

"We are excited to give customers in India a single online starting point where they can shop a wide selection of products sold by local and global retailers, and make informed purchasing decisions," said Amit Agarwal, vice president at Amazon.com, in the report.

Saloni Nangia, senior vice president at Technopak Advisors, a New Delhi-based consulting firm, said in the report that Amazon's entry is an endorsement of the growing Indian e-commerce market.

"On one hand, the customers are likely to get an opportunity to experience more options of products and, on the other hand, the move will help in making e-commerce [in India] grow as it's a well-known brand," Nangia said.

The company's market entry would challenge local startups such as Flipkart.com and Snapdeal.com, which have been doing well among local consumers. Despite low Internet penetration, with less than 10 percent of the population having access to the Internet via PCs, India's e-commerce market is still worth about US$10 billion, the report noted.