Amazon is gearing up to delve deeper into India’s burgeoning fashion and lifestyle e-commerce arena with a new venture, Bazaar, positioning itself against established players like Walmart-owned Flipkart, Reliance’s Ajio, and the SoftBank-backed newcomer, Meesho.
Bazaar aims to captivate sellers by offering a platform for unbranded and stylish fashion and lifestyle items, all priced under 600 Indian rupees (approximately $7.2). In a strategic move to attract vendors, Amazon has communicated that it will not impose “extra charges” or referral fees on items sold through Bazaar, ensuring products are easily discoverable by customers on its platform.
This initiative is part of Amazon’s broader strategy to tap into the fast-fashion segment in India, which has seen a recent surge in popularity thanks to local startups drawing inspiration from global giants like Zara, H&M, and Uniqlo. Despite Flipkart’s leading position in this market, it now faces increasing competition from Ajio, which has quickly secured about 30% market share, as reported by Bernstein.
Notably, Ajio has already made its mark with Ajio Street, offering an extensive array of fashion items starting at just 199 Indian rupees ($2.4), promising the “lowest price,” free delivery, and an easy return policy. Meanwhile, Shein, previously banned in India, is planning a comeback through a joint venture with Reliance.
For Amazon, the launch of Bazaar is a significant step following the closure of three of its ventures in India—wholesale distribution, food delivery, and online learning—late last year. Despite announcing a relatively modest investment of about $2.3 billion in its e-commerce operations in India by 2030, compared to Flipkart, Amazon is doubling down on its AWS cloud business with a planned investment of $12.7 billion by the same year.
Amazon’s foray into the value fashion sector with Bazaar represents a strategic pivot to capture a larger share of India’s fast-evolving e-commerce market. By eliminating extra charges for sellers and focusing on affordable, trendy fashion, Amazon is not just challenging its competitors but also responding to the growing demand for fast fashion among Indian consumers. This move underscores the significance of adaptability and innovation in staying relevant in the highly competitive e-commerce landscape. As Amazon ventures into this new territory, it’s clear that the battle for dominance in India’s e-commerce market is far from over, with every player looking to outmaneuver the other through unique value propositions and strategic investments.
