Amazon is in initial stage of talks to buy fashion and lifestyle portal Jabong, according to a report from the Economic Times (ET). The US based online retail giant is eyeing the acquisition to enhance its fashion offerings, as per four source of ET.
Currently, Jabong is valued at $500 million (Rs 3,000 crore). Flipkart acquired Myntra in May this year for more than $300 million to further bolster its presence in the fashion category. As per industry estimates combined market share of Flipkart and Myntra stands at more than 50 percent while Jabong is responsible for 25 percent share. Fashion is the second largest category in online retail in India resulting in 25% of all sales, as per a Technopak study.
Amazon announced in July that is is investing a whopping $2 billion in India to support its rapid growth and enhance the customer and seller experience in the country. Amazon stirred the Indian e-commerce market with its entry last year. The company has been locking horns with Flipkart and others to be number one in the Indian e-commerce market.
via:Economic Times