In last couple of years, Indian ECommerce Market has become one of the most sought after market for retailers and marketplaces worldwide. With Indian eCommerce Market set to achieve a turnover of over $100 billion by 2020, everyone across the globe want to be part of this fastest growing eCommerce market in the world.
Global biggies like China’s Alibaba and Japan’s Rakuten already announcing their plans to enter the market, we have yet another giant that is now making an India foray. Tiens Group, a Chinese multinational conglomerate who mainly operate in space of biotechnology, logistics, finance, property, retail, e-business, education and tourism plans to launch their online marketplace in India in the second half of this year.
The group will not only have a online marketplace, but also plans to expand its direct selling business in the country reports PTI.
Tiens South Asia Region President Kevin Hou said, “We plan to sell 3,000 products from the online shopping platform, which would be ready in the second half of the year. Indian customers will be able to buy products from different countries on the platform”
Tiens will not be just a local marketplace, but will also list products from sellers across the borders enabling Indian consumers to buy products from international sellers easily.
Earlier this year, in March, Govt of India clarified that they will allow 100 per cent foreign direct investment (FDI) in online retail of goods and services under the ‘marketplace model’ through the automatic route. This has enabled multitudes of International players to make announcements on their Indian entry.
With flurry of new multinational players coming in play, incumbents like Flipkart, Snapdeal and Amazon are going to witnesses slew of competition in a market that is seeing cut-throat fight to gain market share!
Tiens Local Manufacturing
Along with setting up their online marketplace and ramping the existing Direct Selling model, Tiens Group is planning to setup a local manufacturing facility in India as well. Hou said, “We are negotiating with parties for setting up local manufacturing facilities to produce healthcare and personal care products”
In addition, the group has setup their branches in nine Indian cities including Guwahati, Kolkata, Hyderabad and Mumbai with plans to open two more in Chandigarh and North East region.
Tiens is known globally for selling their products through multi-level marketing approach just like Amway. Given the fast-growing Lucrative Indian eCommerce market, Tiens seem to have changed their strategy for India and seem to be going with the Online marketplace model, that will also support their Direct Selling business!