Today morning when I got newspaper i saw a full page advertisement of Itz Cash and i was reminded of similar type of newspaper advertisements which used to appear in news paper months back. But those advertisements were not of digital cash wallet rather they were of different online shopping sites. Each shopping sites came with such an offer which you couldn't think of ignoring. As Buffet says competition doesn't bring profit for business, but it surely brings benefit for customers. Everyone now knows about the online shopping sites that how many of them exist now especially after merger of Snapdeal and Flipkart the only competitor left for them is Amazon.
Whenever I think of the competition in the E-commerce or in digital wallet market i am reminded of oil industry which flourished in US in late nineteenth century when oil was newly discovered and there was huge competition but slowly the market was consolidated by Rockefeller. Later in his life Rockefeller was accused of playing foul and using unfair means to gain monopoly over oil market.
Its not just with oil market in US in nineteenth century or with e-commerce sector in India at present time but with every market- when the entry barrier is quite low, all of sudden a large number of players emerge but when the competition starts to grow just few players are left. And the entry barrier is so low in internet related firm that anyone having fine skill of computer science can enter the market. Its just a matter of time how long can players survive. So far it was only in telecom sector that so many players have existed for so long without merger, but that trend is also changing when recently Vodafone and Idea decided to merge together after the entry of Jio in market.
The population of India makes it such a huge market that anyone who can calculate and even try to get share of even a minimal 5% of market can capture a huge customer base. Few years back in business world when Apple decided to come with Apple Pay, analysts were saying that that will change the whole payment system. Iphone is not so common in India surely Apple Pay couldn't change the behaviour of people through market force and shape its dynamics, which a single decision of government has done. Digital payment and e-wallet is the new hot market for India which everyone is vying to gain control over. Let's see who emerges as winner in the market but surely by the time its decided people will benefit from the cash back thing which these wallets are offering.
Whenever I think of the competition in the E-commerce or in digital wallet market i am reminded of oil industry which flourished in US in late nineteenth century when oil was newly discovered and there was huge competition but slowly the market was consolidated by Rockefeller. Later in his life Rockefeller was accused of playing foul and using unfair means to gain monopoly over oil market.
Its not just with oil market in US in nineteenth century or with e-commerce sector in India at present time but with every market- when the entry barrier is quite low, all of sudden a large number of players emerge but when the competition starts to grow just few players are left. And the entry barrier is so low in internet related firm that anyone having fine skill of computer science can enter the market. Its just a matter of time how long can players survive. So far it was only in telecom sector that so many players have existed for so long without merger, but that trend is also changing when recently Vodafone and Idea decided to merge together after the entry of Jio in market.
The population of India makes it such a huge market that anyone who can calculate and even try to get share of even a minimal 5% of market can capture a huge customer base. Few years back in business world when Apple decided to come with Apple Pay, analysts were saying that that will change the whole payment system. Iphone is not so common in India surely Apple Pay couldn't change the behaviour of people through market force and shape its dynamics, which a single decision of government has done. Digital payment and e-wallet is the new hot market for India which everyone is vying to gain control over. Let's see who emerges as winner in the market but surely by the time its decided people will benefit from the cash back thing which these wallets are offering.
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