Amazon is an American electronic commerce company that has started their website as an online bookstore and later expand it to sell electronics, apparel, furniture, toys, food, jewelry and much more.
It has separate retail websites currently working for various countries including India too. Recently Amazon announced that it will enter into Pakistani market by collaborating with local online retail store. According to a report of Pakistan telecommunication authority (PTA), Pakistan’s eCommerce market is on boom and increasing day by day, It is expected that online retail stores cross $1 billion mark by 2020.
Alibaba China’s largest eCommerce platform also looking for come into an agreement with Daraz.pk to invest in Pakistan’s eCommerce industry. On the other hand, Amazon is also looking to invest for the same purpose. It looks likeAlibaba will face competition and has to establish a strong platform in Pakistan eCommerce market.
All credit goes to increasing trend of online purchasing and selling, that global retailers are interested to invest in Pakistan’s economic industry.
The entrepreneur Adam Ghaznavi head of Rocket Internet’s Easy Taxi and Kaymu.pk stated:
“The China Pakistan Economic Corridor (CPEC) is also bringing in a lot of Chinese investment to the country, which will attract investors. Both Alibaba and Amazon will be interested in Pakistan, which has 70% mobile phone penetration in its 220 million population.”
Further more, Amazon will not directly operates by its franchise name, instead it owned a fair stake of 33% in Clicky.pk through its assets in souq, a Dubai based online retail store.
According to reports, Amazon wants to invest more in clicky.pk in order to make its place in the market. If the agreement between Alibaba and Daraz.pk signed, then Alibaba comes in direct competition with Amazon.
These three geographical locations — India, Dubai, and Pakistan — makes sense for Amazon to scale up. It will make entry into multiple Asian countries, a new strategy to increase its volume, optimize its sourcing and reduce single-country dependence for revenue flow, According to sources.
On whole, Amazon entry in Pakistan will be a huge success for Our eCommerce industry. This will certainly favorable to grow our Online retail market on larger level.