B2B Payments

B2B eCommerce Rivalry Between China, India Heats Up

India Prime Minister Narendra Modi may be pushing for a rise in Made-In-India manufacturing, but competitive pricing from China often proves too good to pass up, especially in the eCommerce sector, according to the latest reports.

A leading Chinese B2B eCommerce firm, DHgate, has reportedly struck a deal with India-based Shopclues.com, which acts as a marketplace platform for other retailers. DHgate will now reportedly sell its products through the platform. It’s a tie-up, reports said, that are similar to collaborations expected from Alibaba, a prominent supporter of the B2B eCommerce model in India.

But these collaborations, reports said, are straining India’s competitive edge in manufacturing. China is expected to nearly double its cross-border trade next year, and eCommerce firms are especially fixated on the Indian market.

Prime Minister Modi recently spoke in China to promote the Made In India slogan to leading Chinese companies. And while Shopclues’ new deal with DHgate means that Indian companies can source from China, it also means that Chinese merchants can also access the Indian market. That could mean big business for both sides of the equation.

“Our gross merchandise value is about $400 million and it is expected to increase to over $1 billion in the next 12 months,” said Shopclues co-founder and CEO Sanjay Sethi. “I expect at least 10 percent of it to come from the partnership with DHgate.”

Alibaba, too, is planning to bring its Chinese eCommerce presence to India’s B2B eCommerce sector in bigger ways. The company is slated to partner with mobile commerce platform Paytm, based in India.

Other foreign businesses are launching operations in India, too. Amazon, for example, launched its B2B online marketplace last month, while Staples and Walmart have also set up digital shop in the nation.

Reports did not indicate whether Prime Minister Modi has commented publicly on the rise of foreign online sellers entering the Indian market, potentially thwarting his Made In India campaign.

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