Online marketplace eBay has announced a $50 million (R315 million) deal to purchase Indian online shopping company Baazee.com, a move that analysts predict will spark a trend.
eBay already has presence in other Asian markets like China, Hong Kong and Singapore.
Local Bidorbuy MD Andy Higgins says that, although parent company Bidorbuy Inc is a majority shareholder in the Indian online marketplace, the deal will not affect South African consumers. "It won`t have any direct consequence for anyone here."
Higgins adds that the deal indicates the beginning of globalisation in the online marketplace industry. "This is really the first time that we have seen an international company buying into developing markets in this industry. Analysts I have spoken to say this is likely to be the start of a trend."
India is a particularly appealing market to international buyers because it has huge potential with minimal restrictions, says Higgins. "There are about 17 million Internet users in India, and also there is not a lot of red tape or bureaucracy involved, unlike China."
While investing in developing countries may be a trend, it is not likely to reach SA yet, says Higgins. "One reason is that our export market is much smaller. But I wouldn`t dismiss it. Personally, I think it`s a matter of time."
Globalisation of the online marketplace industry would benefit consumers, adds Higgins, because it could allow consumers access to traders around the world, rather than within their own market.
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