Consolidation forces ecommerce firms to halve office space takeup

The consolidation among ecommerce players in India has seen companies rationalising or scrimping on large office space in cities practically halving their commercial real estate transactions. The share of the ecommerce sector has fallen by almost half in the first half of this year as compared to the same period last year. According to real estate services firm, the share of ecommerce companies had dropped from 9 per cent in H1 2015 to 5 per cent in H1 2016. Last year, ecommerce companies buzzed because of big lease transactions by companies like Flipkart, Myntra and Amazon. However, majority of the startups are now incorporating corporate real estate strategies such as consolidation, expansion and focus on peripheral locations to save cost. Industry experts say a company can save as much as 25 per cent on its operational costs by rationalizing office space.

Read more: Economic Times