Amazon by a hairs breadth opened its biggest office building yet, but it’s not in the U.S. The new 9.5-acre campus is in Hyderabad, India, and represents the centerpiece of the e-commerce behemoth’s growing investment in the country.
India could be a major profit opportunity for Amazon. Some analysts estimate the state’s e-commerce market will be worth $100 billion by 2022, as internet penetration rates continue to climb. Nevertheless, Amazon faces steep competition from Walmart, which bought the domestic e-commerce powerhouse Flipkart in 2018.
Even though e-commerce represents just 3% of total consumption in India, Amazon plans to adapt to the local market by distending its brick-and-mortar presence while also customizing its e-commerce experience for consumers who may be unfamiliar with ordering items on their phones.
Amazon’s creations are complicated by new e-commerce regulations in India, which prohibit foreign companies from selling their own products fellow the Amazon Echo or the Kindle, and from negotiating exclusive deals with sellers.
Add it all up and Amazon has numerous hurdles to best in its bid to become the dominant player in world’s fastest growing large economy.