Unlike well-ordered supermarket shelves, goods are simply stowed where they fit, sprinkled across the facility for quick access based on computer algorithms. A row of kitchen blenders lie near a rack filled with baby diapers. Across the aisle are pillows, but sheets are nowhere in sight. The random sorting actually creates efficiencies, Saxena said. Ultimately, it’s meant to be a streamlined operation to rein in overheads in a country where Amazon still bleeds copious amounts of money as it builds up.
In India, the company has grown revenue at about 124 percent year-on-year, totting up 85 percent growth in the first quarter and 88 percent in the second quarter this year, according to Agarwal, the country chief. A lot, however, rides on the upcoming peak sale period when Amazon and Flipkart will strain their hardest to get buyers’ attention. Agarwal says he’s counting on a "brilliant" season in terms of traffic, new customers and sales.
As he walks around the massive space, Saxena, a tall man with a mass of salt and pepper hair, can’t help remarking on the big challenge Amazon has ahead in this vital geography.
In India, everything from sellers to logistics is at a different maturity level, Saxena said. To tackle it, he said, Amazon has to be "not just a global company, but also local."
This article was provided by Bloomberg News.