Amazon.com, Inc. (NASDAQ:AMZN) has decided to sell luxury homes across four major cities in India. The retail giant has entered in to a tie-up with Tata Housing, one of the biggest real estate players in the country, to sell properties online.
“Through this collaboration, the world’s most desirable homes and India’s biggest online store are teaming up together to announce a home offer like never before,” Tata Housing said in a statement.
The price of the ready-to-move-in apartments will be in the range of Rs. 75 lakhs to Rs. 14 crores ($100K – $2M).
Customers can now book an “apartment with a click of a button and transform it into a home with products from Amazon,” Brotin Banerjee, MD and CEO, of Tata Housing noted.
Interestingly, this is not the first time that Tata Housing will be selling properties online. The company has till date sold more than 2,000 apartments through various online platforms.
The property developer had tied up with Facebook in 2015 to sell properties via social media. Prior to that in 2013, Tata Housing had taken part in Google Inc’s Great Online Shopping Festival to sell its luxury projects across seven cities in India.
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After China Bungle, Amazon Doesn’t Want to Miss the India Bus
The news of the deal comes at a time when Amazon.com, Inc. (NASDAQ:AMZN) has expanded its logistics footprint across 2,100 towns and cities in India. Since entering the country in 2013, Amazon has applied its proven mantra of low price, wide selection and fast delivery to gain popularity among shoppers. Amazon, in fact, expects India to become its biggest market after the U.S. within the next decade.
According to Goldman Sachs, the Indian e-commerce market is forecast to grow to a whopping $228 billion by 2030. That’s almost 10 times as large as today’s market. Amazon faces significant competition from local firm Flipkart. But with strategic investments over the past couple of years, Amazon has managed to steadily erode Flipkart’s dominance. Besides, Amazon is also focusing on the online-to-online segment in India, which is touted to be an ever bigger opportunity than e-commerce.
Remarkably, even with under 20% internet penetration, India’s total internet users surpassed those in the U.S. last month. That’s a key indicator of the tremendous growth potential that India holds for Amazon.
Shares of Amazon.com, Inc. (NASDAQ:AMZN) closed last week at $569.91. The stock is down 16% year to date, compared to an 8% decline in the S&P 500. Amazon was among the best performing stocks of 2015.