India is set to make an aggressive gamble with its online shopping ecosystem.
Amazon, the world’s biggest online retailer, is set for a major shift in how it handles online shopping as it plans to take over the Indian market with a mix of new features and services.
The company will also add its own services like Prime Now, a way to shop online for products.
Amazon’s plan is part of a broader transformation of Indian retail, which has seen retailers such as Wal-Mart and Flipkart start to offer in-store shopping as a way of attracting shoppers.
In recent months, several major retail players, including Walmart, have also announced plans to add in-house shopping, but the trend has been a slow one.
While the Indian retail industry has seen a huge surge in spending in recent years, its share of the online shopping market has remained stagnant.
The country has seen an increase in online spending of $15 billion in 2016, but this is dwarfed by the $2.8 billion spent by the U.S. on its online retail business, according to eMarketer.
While it’s still too early to say if Amazon’s move will change Indian retail and consumers’ habits, analysts expect it to.
The move will boost Amazon’s business by reducing the amount of time spent shopping online and improving customer service, said Suresh Nair, chief economist at JBC Securities in Mumbai.
Amazon also will make it easier for consumers to find items they’re looking for online and make it possible to shop in India with more than one device, he added.
The new Amazon will be the company’s largest foray into India, Nair said.
The Indian e-commerce market is expected to be worth $1.7 trillion by 2021, and Nair expects the company will be able to take advantage of the market’s demand for in-home shopping by expanding its online store to make it more appealing to Indian consumers.
India is also likely to see an increase of $1 billion in sales from Amazon in the coming years, according the JBC report.
“This is a great opportunity for Amazon, as it will be opening up new retail stores in the country, which will boost their revenue stream,” Nair added.
Amazon is currently expanding its footprint in the United States.
Earlier this year, the company bought Whole Foods Market for $13.9 billion.
Amazon is also expanding its presence in China and India, which have been its biggest markets.
The online shopping giant is also looking to expand its presence beyond India.
Earlier in the year, Amazon opened a store in Germany, which is now the second largest online shopping destination in Europe, after the United Kingdom.
The Amazon move comes after the company said it is looking to build a “digital ecosystem” that will allow shoppers to access a variety of services and products on its platform.
The digital ecosystem is expected be built on the Amazon app and Amazon Music.