Professional Documents
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E-Commerce in India
E-Commerce in India
E-Commerce in India
WALMART–FLIPKART
DEAL:
IN SEARCH OF STABILITY
INTRODUCTION:
Walmart paid $16 billion buying a 77% share in Flipkart in 2018, aiming
to counter Amazon's expanding dominance in India's e-commerce
business. However, Flipkart encountered issues such as dwindling
market share and strict FDI regulations. In 2019, Reliance entered the
market with JioMart, increasing competition. Despite these challenges
and the impact of the COVID-19 pandemic, Flipkart planned to recoup
after the lockdown. The success of Walmart's investment in Flipkart
was dependent on its ability to overcome these hurdles and emerge as
a top e-commerce company in India, despite tough competition and
an evolving regulatory framework.
E-COMMERCE IN INDIA: GROWTH AND CHALLENGES
The Indian e-commerce business grew rapidly, hitting $38 billion
in 2017 and expected to reach $200 billion by 2026, thanks to
variables such as discounts, delivery infrastructure, and
smartphone usage.
2.Acquisitions by Flipkart:
Flipkart strategically bought platforms like weRead and Chakpak
Media for book and film-related content, respectively, to broaden
its client base and services. Taking complete ownership of Myntra
and integrating PhonePe improved its position in fashion and
digital payments. Flipkart's acquisitions established it as a
comprehensive destination for books, fashion, and digital
services.
FLIPKART’S CHALLENGES: