Manish Tiwary, the head of Amazon’s operations in India, is stepping down after a long tenure. His resignation comes at a time when Amazon is already grappling with mounting competitive pressures in one of its most vital international markets.
Tiwary’s departure marks the end of an era characterized by significant efforts to enhance Amazon’s presence in India. He joined Amazon in 2016 after a successful career at Unilever and quickly ascended to the role of country manager. Under his leadership, Amazon aimed to revolutionize the e-commerce landscape in India by focusing on consumer and seller services. Tiwary also went on to play a pivotal role in helping Amazon digitize millions of small businesses across the country.
“Manish’s leadership over the last eight years has been instrumental in delivering for customers and sellers, making Amazon.in the preferred marketplace in India,” Amazon noted. Tiwary will remain with Amazon until October to ensure a smooth transition. Amit Agarwal, Senior Vice President for India and Emerging Markets, will continue to guide the Amazon India team.
Despite Tiwary’s contributions so far, the e-commerce behemoth faced several challenges in penetrating India’s smaller cities and towns. Domestic competitors such as Walmart-owned Flipkart and SoftBank-backed Meesho have secured stronger positions in these regions. Analysts suggest that Amazon’s difficulties stem from a limited product range tailored for price-sensitive customers and less developed logistics networks in rural areas, making it harder to compete with local rivals.
The e-commerce landscape in India is intensely competitive, with multiple players vying for market share. According to analysts, Meesho has surpassed Amazon in terms of mobile app monthly active user share among e-commerce apps in India. Furthermore, Flipkart boasts over 50 million daily active users on its mobile apps, whereas Amazon has fewer than 40 million, as reported by Bank of America analysts. This gap underscores the fierce competition Amazon faces from local entities that have better adapted to the specific needs and preferences of Indian consumers.
In urban areas, Amazon contends with the rise of quick commerce firms like BlinkIt, Swiggy, and Zepto, which attract customers with promises of ultra-fast deliveries, sometimes within just ten minutes. Recently, Flipkart launched its own quick delivery service in Bengaluru, further intensifying the competitive environment. To counter these moves, Amazon reportedly engaged in talks to acquire a stake in Swiggy.
Amidst these developments, Amazon has noticeably shifted its focus towards its cloud business in India. Amazon Web Services (AWS) has seen significant investments and major exits, including that of Puneet Chandok, head of AWS India and South Asia, who left in August 2023. Despite these leadership changes, AWS has committed $16.4 billion in investments in India by 2030, including a substantial $12.87 billion announced in May 2023.
