&gt;  Those people have simple mind, once a brand settles in their life it is very difficult for another one to replace it.<p>This sounds offensive and it is obviously not true in my first hand experience. The main issue is cost effectiveness once merchandise is not heavily discounted. One good example is telecom. There is no brand loyalty even in remote areas as people keep changing already cheap prepaid plans for something cheaper. See this: <a href="http:&#x2F;&#x2F;www.gartner.com&#x2F;newsroom&#x2F;id&#x2F;1963915" rel="nofollow">http:&#x2F;&#x2F;www.gartner.com&#x2F;newsroom&#x2F;id&#x2F;1963915</a><p>&gt; At US$40, the ARPU in India is among the lowest in the world and about one-third of that of China<p>Much less talked advantage in India is extremely cheap labor who deliver merchandise to homes, and that is available to any new competitor. Flipkart&#x2F;Snapdeal etc are not much different from Indian IT industry which talked a lot about innovation. However it was(is?) mainly about 1&#x2F;3rd or less cost comparable to west. But for E-comm it is going to be worse as all&#x2F;most of their customers are in India.