Although Indian e-commerce segment is very remunerative and profit oriented yet it is also subject to financial and legal risks. It seems Amazon has been playing safe and has adopted wait and watch policy till the e-commerce industry of India is consolidated. This includes regulatory clarifications as well as till now FDI in multi brand retail sector has not been allowed in India.
According to media reports, Amazon has started selling apparel on its India website. Amazon will sell ethnic women wear from more than 90 brands and also offer sunglasses for men, women and children.
“With a vast selection of fashion jewellery, watches, beauty products, handbags, clutches, shoes and now ethnic wear and sunglasses, Amazon.in offers a compelling fashion and lifestyle shopping destination for women,” Amazon said in a statement.
Amazon launched its marketplace platform in India last June by selling books and video content. Since then it has expanded its product offering to electronics, toys, music and other consumer goods.
Amazon’s entry into apparel and accessories segment will increase competition for other Indian e-commerce players of this field. Apparel and accessories offer higher margins to online retailers compared with books and electronics, where there’s less or no room to set high prices.