Hi,
I feel both the questions you asked are very valid and we should try to find out more information about this.
- I did go through Google Shopping and everything about the website screams B2C. Even after digging deeper, I could not find a few niche products that any typical B2B website would have. Amazon does have a B2B segment in India but that focuses only on finished goods corporations would need like IT Products, Stationery, Cleaning Materials, etc. The reason Indiamart is unique is because it is the only truly B2B marketplace in India where you can find every product a business requires. If you are a tyre manufacturer who needs a special chemical, Indiamart is the easiest way to find one. If you want bottle caps for your soft drink bottle, Indiamart is the place to find a manufacturer for it. You will struggle to find any other comparables which provide such a wide range of products. Alibaba in China is the most well known example outside India.
There is always a threat of a tech giant swooping into this market. Like you said, right now it would be too premature to assume that it can never happen. However, I do not see any such threat visible in the near term simply because this seems a whole different arena than the arena they are currently playing in. Amazon has spent years mastering consumer logistics. The logistics to deliver a phone and the logistics to deliver 10,000 bottle caps are completely different. There are too many niches in this segment and the unit economics would be incredibly difficult. This is the reason Indiamart too exited this model and focused on subscription model. I have not seen Amazon do anything similar in US or any other country. I would assume they would try this model in their home market first rather than directly in a country like India. Even if they ever do plan to start something, it would be more on the lines of what Udaan is doing(Finished goods) than what Indiamart does.
- So Zee Marathi and Radio Mirchi have launched their own B2B websites? I have not come across them but in case they have, the threat would not be high. Indiamart’s moat in the their network benefits. It has an incredible first mover advantage and for anybody else to reach the number of listings and buyers would require years of marketing and advertising.
Indiamart’s unique advantage is the wide variety of products available on its website. To a normal individual it is hard to fathom the number of raw materials to make a finished good. Around 200 raw materials are required just to make a tyre. It will be extremely difficult for a new entrant to replicate the sheer breadth of products.
Disclosure - Invested and hence views might be biased.