Flipkart is in a big battle with Amazon in India and Walmart is in a big battle with Amazon in US and several other parts of the world. Walmart which has been really keen to enter Indian retail for a long time is looking to take a majority ownership of at least 51% in Flipkart, still the leading E-Commerce company in India despite a growing threat from Amazon. There are reports that with this majority purchase, Flipkart’s valuation could double to nearly Rs. 130,000 crore. Flipkart founders and long list of backers including Softbank, the Japanese technology company and employees would selling privately and publicly to facilitate Walmart’s entry. With this, the Indian E-Commerce marketplace and competition is likely to heat and become more intense with consumers becoming the biggest winners! The impact on shopkeepers and suppliers could be tough but harder to predict.
- 22 Mar 2018
Amazon, the US based eCommerce powerhouse has gained massive scale and share in only 3 years at the expense of Flipkart, Snapdeal and other smaller Indian eCommerce companies. Over one year ago, Amazon’s share by gross market value (gmv) was 15% while Flipkart’s share was around 45%, but in the most recent July quarter, Amazons’s share has grown to ~32% while Flipkart’s has fallen to ~40%. Not just that, Amazon carries 65 million products to Flipkart’s 45 million. Amazon has a strategy for vendors to export and buyers to import products (which could be in violation of government rules) and Flipkart has none. Amazon’s CEO said that “Amazon India has surpassed our most ambitious planned milestones.” Of course, almost all eCommerce companies are losing money so access to financial is needed, Indian companies are cash starved. So it is scary if Indian companies would lose leadership, domination and overtime name recognition in this growing segment to foreign companies.
- 21 Oct 2016