Indian e-commerce business is in a `euphoria phase’ now and business models will take time to evolve, a top official from Reliance Retail Limited said.
“The business models will evolve in the next 12-18 months. It has to come through trial and error,” Damodar Mall, CEO of Value Format at Reliance Retail Limited, said speaking at the sidelines of TiECON Chennai recently.
Indian ecommerce industry has gained a lot of action with billions of dollars poured into the sector.
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It has attracted global honchos such as Amazon’s Jeff Bezos, who is investing $2 billion in India, and Japanese Internet baron Masayoshi Son’s Softbank, which recently invested in Snapdeal. Flipkart raised $1 billion recently.
Mr. Mall said that modern retail was only around 25 per cent even in metro markets.
“There is lot of scope still to grow the retail supermarket format,” he added.
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Mall did not want to disclose Reliance plan for e-commerce. Reportedly, Reliance Retail is working on a pilot for its e-commerce foray.
Mr. Mall joins Future Group chief Kishore Biyani, who had expressed similar views about Indian e-commerce last week. Biyani had said the euphoria in Indian ecommerce would last 6-18 months.