Industry News

Venture between Future Group and Paytm

India: Future Group’s CEO Mr. Kishore Biyani recently joined hands with the Payment Bank giant, Paytm. Future Group intends to sell the products of Big Bazaar on the site of latter. This is a part of the strategy to build an alliance between the Future Group and Alibaba, which happens to be the largest shareholder of Paytm. Alibaba is also planning to enter into the B2C market with this move. Alibaba is intending to gradually enter the B2C model through its Tmall system in next 6 months, Paytm being one of the major options. Biyani has already ended Future Group’s exclusive selling arrangements with Amazon in October 2014. Future Group will be major seller on Alibaba’s B2C Tmall.

Future Group is all set to enter into an alliance with country’s top payment bank, Paytm. This step has made the intentions of Mr. Biyani to launch a new venture into E-Commerce industry. Future Group holds a strong presence in retail market via brands like Big Bazzar, Easy Day and Central. This also indicates that Alibaba is going to enter the B2C market through this act.

According to TechSci Research, the booming E-Commerce market provides a great opportunity to excel. The use of online platform ensures a multifold growth of the business. The current CAGR shows a projected growth of 36% by 2020. Big names like Flipkart, Amazon and Snap Deal promises positive growth in the online market. Major alliances and mergers like Future Group and Paytm ensures a healthy expansion in future. It offers the companies with an easy way to penetrate their respective markets by increasing their reach and availability. These factors are indicators that the online market is bound to grow in coming time as it provides a hassle free buying experience for the customers.

According to recently published report by TechSci Research, India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snap deal and Amazon.