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'Regulatory challenges exist everywhere. What we look for is regulatory stability over time.'
Online retail major Amazon is navigating a challenging regulatory environment in India at a time when e-commerce is witnessing rapid growth and quick commerce has emerged as a new reality.
Samir Kumar, in his first interview since taking charge as Amazon India head in September, tells Aryaman Gupta and Nivedita Mookerji/Business Standard in New Delhi that regulatory challenges exist in every market and that India is not more difficult than others.
On quick commerce, he says a pilot for 15-minute delivery is starting in Bengaluru this month.
You have been in Amazon for 25 years and now heading the India business for a little over two months now. How have things changed for you?
It's not a whole lot different from what I was doing earlier, just that the travel has increased quite a bit... The way our team operates is the same.
So, when I moved back from Seattle to Bengaluru, it was very easy to settle down.
Is the regulatory environment in India more challenging versus the rest of the world?
Regulatory challenges exist everywhere. What we look for is regulatory stability over time.
We comply with local laws and regulations in every market we enter, and we have a very high bar for that around the world.
It is not that India is more difficult than other places... We are focused on enabling, for our customers and sellers.
We have 1.6 million sellers on our platform, with 65 per cent of them coming from small regions. Our Prime business is growing.
We are increasing the speed of our delivery everywhere. Our selection is continuing to go up.
We continue to invest in infrastructure. We have created 130,000 direct and indirect jobs. We are building for India.
Is the increased regulatory ire, from the government, retail industry bodies, or the anti-trust body--Competition Commission of India (CCI), dispiriting?
It isn't, because we are focused on our customers and sellers, and building for India. As Jeff (Bezos) always said - as a large company, we should be scrutinised. We are open to that.
Is there any merit in the allegations from different quarters?
I won't comment on that. But we have to build in the right way for our sellers and customers, reduce the cost of doing business for them... I am very internal-focused.
My priorities are to build a strong team, get the largest selection in India, improve customer satisfaction, improve speed, and enable businesses to sell all over the world.
We have seen some top level exits recently. Are you worried about attrition?
Not really. A lot of team members I was working with before I left (for Seattle) are still here. When I had moved to India in 2012, I had three goals: To hire and develop a strong team, build the right culture in that team, and build India's largest selection (of products)... There will always be some people who leave for their own reasons, but I am not worried.
What are your quick commerce plans?
Our strategy has always focused on "selection, value and convenience" and our vision is to build a large profitable business in India.
So, while we focus on implementing our strategy to offer the largest selection at fastest speeds and greatest value to customers in every single pin code across the country, we are excited to start a pilot to give our customers a choice to get their everyday essentials in 15 minutes or less.
We already have millions of customers across India including prime members already who trust us and will look forward to this convenience. The pilot will be in Bengaluru.
You have increased your export target. Will this make India among your top export markets globally?
We have announced a target of $80 billion in cumulative exports from India by 2030. It took us five years to get to $5 billion (in exports).
And over the next two years, we have reached $13 billion (in 2024).
With the investment that the government of India is doing in manufacturing hubs, GDP growth, and increase in seller base, we are seeing that growth curve.
With the new export target, India will be among the top export markets for Amazon globally.
How close are you to achieving your previous investment targets?
We have already invested $11 billion in India, and we are going to get to $26 billion in cumulative investments by 2030.
We will be investing not just in the stores business but also Amazon Web Services (AWS)... Our AI (artificial intelligence) investments in India will depend on how many Indian entrepreneurs are going to use AWS.
Has there been a moment when you thought India is not a place to do business due to regulatory pressures?
No, I love what we are doing in India. I am going to invest all my time and energy in growing this business.
Feature Presentation: Aslam Hunani/Rediff.com
