SoftBank sets foot in India’s e-commerce sector

Japan’s telecom giant SoftBank is eyeing opportunities to expand in South Asia. With its recent investment of USD627 million into Snapdeal – an Indian e-commerce firm – Softbank becomes its largest shareholder. It is one of the largest investments ever made by a single investor in an Indian e-commerce company. Flipkart, another Indian e-commerce player, has also received foreign investment. Does this mark the start of an investment spree? Leon Perera, Chief Executive Officer of Spire Research and Consulting shared his insights on the implications of these investments in Japan’s Diamond Magazine.

Softbank is a Japanese internet and telco behemoth. It is listed under 33 industries classification on the Tokyo Stock Exchange. Recent financial profits for Softbank’s Q2 2014 touched JPY560.7 billion in terms of net income. Softbank recently acquired the number three mobile service provider in the US – Sprint Corp – for USD21.6 billion. It has one third of shares in Chinese e-commerce giant Alibaba.

Perera opined that SoftBank has now set its sights on Indian shores through its recent investment in Snapdeal. This is only the beginning. It has embarked on an expansion drive, with a war-chest of USD10 billion to invest in the e-commerce industry in promising markets. Choosing SnapDeal means enabling it to create a stronger foothold in the Indian market. SnapDeal currently boasts of more than 25 million registered users as well as 50,000 business sellers.

India’s current e-commerce market is valued at USD2 billion which amounts to an overall retail market share of 0.4%. However, by 2020 this is expected to grow up to USD30 billion – contributing approximately 3% of overall retail sales.

However, restrictions on Foreign Direct Investments (FDIs) remain a significant impediment. Current laws restrict global companies from selling products directly to Indian consumers. Foreign companies can only invest directly into domestic companies as a means to expand. However, this has not deterred SoftBank. Other investors will no doubt follow its lead and attempt to play catch-up.

https://www.spireresearch.com/newsroom/media/softbank-sets-foot-in-indias-e-commerce-sector/

Comments

India ranks among the world’s top compact SUV markets!

India overtook Japan in 2017 as the third largest manufacturer of compact SUVs. Big players such as Renault, Mahindra & Mahindra, Ford Motor, Hyundai Motor, Maruti Suzuki and other SUV manufacturers sold 457,698 compact SUVs in 2017 – over four times the unit sales in 2015, at 107,634. While 2016 saw shrinking sales for this vehicle category in China and the USA, sales in India grew nearly 50% from 307,365 units in 2016. Will India overtake China as the world’s largest compact SUV market? For more information, click here.

Spire Client Entertainment Night April 2016

Spire Singapore hosted its first Client Entertainment Night of the year. Our business associates and partners joined us for a dinner reception followed by the movie screening of “Batman vs Superman: Dawn of Justice” – the epic showdown of superheroes. The event was held at Cathay Cineleisure Orchard. It was an opportunity for everyone to let their hair down and take a break from the office. With nearly two years gone since Superman’s battle with Zod – which left the city of Metropolis in ruins, leaving Batman helpless among many – Batman decides to avenge the threat to humanity while Lex Luthor conspires to launch his own vendetta against Superman. The highly anticipated action flick, the good food and even better company made for a great evening enjoyed by all. https://www.spireresearch.com/newsroom/events/spire-client-entertainment-night-april-2016/

Egyptian-Israeli gas deal to boost bilateral trade

A USD15 billion deal has been announced between Israel and Egypt to export natural gas. Israel’s Delek Group has signed an agreement to supply 64 billion cubic meters of gas in a span of ten years to Egypt’s Dolphinus Holdings. The deal is considered a milestone ever since the 1979 peace accord, bringing Egypt a step closer to becoming a regional energy hub. However, the transportation of natural gas from Israel to Egypt is a challenge given the security risks. Will the Egypt-Israel gas export deal usher in a relationship of bonhomie and economic co-operation? For more information, click here .

Spire joins AmCham Corporate Community Day for seventh consecutive year

Spire Singapore collaborated with the Singapore Children’s Society for the fourth consecutive year, in support of AmCham Singapore’s Corporate Community Day (CCD) 2014. This is the seventh year in which Spire has been participating in the CCD program, which aims to promote corporate volunteerism. Spire Singapore took beneficiaries of the Singapore Children’s Society to a pizza making session. The children were thrilled by their new-found ability to make their own edible creations. They enjoyed the morning while at the same time picking up a useful and confidence-building skill, not to mention many fun facts about the history of pizza. We were honored by the visit of Deputy Chief of Mission at the US Embassy Blair Hall, who joined us with his wife Valerie. Valerie joined in the pizza making session. Blair and his team interacted with the beneficiaries as well as the staff and volunteers of Spire Singapore and the Singapore Children’s Society. The enthusiasm did not di...

Family cafés the answer to Finland’s aging society

Finland’s largest non-profit organization (NPO), Mannerheim League for Child Welfare (MLL) dedicated to child and family welfare, run Family café sessions for a nominal fee. Such cafés were established in Sweden in the 1970s and moved to Nordic countries in the early 2000’s. These cafes help combat loneliness and contribute towards the mental health of parents in Finland’s aging society with low fertility rates. Will family cafés promote mental health and family life in Finland’s rapidly aging society? Read more: https://www.spireresearch.com/newsroom/spirethoughts/family-cafes-the-answer-to-finlands-aging-society/

The Knowledge to Decide

Search This Blog