The world’s current e commerce deal is Walmart acquired Flipkart in a $16 million deal with an overall valuation of $20 million. Now, Walmart owns 77 percent of the Bengaluru based organisation that is now seen as the largest and biggest pay out of the US firm. This business deal will also see the founder of Flipkart, Sachin Bansal to exit finally and completely by competing against US based business giants Amazon and Walmart in the Indian business market. The deal has shaken up the industry upside down and here’s how it is impacting the industry and much more:
Small Online Sellers Panicking: The deal is a major business crusher for the online start-ups and other online sellers in the competition. Walmart is a big online seller giant with a turnover of over $500 million, which has created a sense of nervousness and panic amongst the online seller competitors and industry. Walmart is known for its reputation to wipe off and killing small online businesses for ultra-low prices. The most prominent fear in the mind is that Walmart may bring in its own privatised business labels through its latest acquisition of Flipkart to the Indian market grounds, which can further worsen the situation of tension and stress amongst the online retailers.
The Boost to Economy: There was a constant battle and competition in the online Indian industry for gaining the leadership in the Indian market in between Flipkart & Amazon, which may intensify after Walmart acquiring Flipkart. This can further lead to a war between Amazon & Flipkart that will not supposedly create a vast pool and infrastructure of supply chain but will also create a lot of job opportunities in the industry. With this business deal, experts are of view that the Indian total consumption rate is expected to increase from $1.3 trillion in the year 2016 to $3.6 trillion in the coming 2027, as per the industry data. Also, as per industry expert’s view, there can be a slight increase in the infrastructure and agriculture sector because of the raging competition between Flipkart and Amazon.
Huge Variety in Less Price: The US based giant Walmart owns a huge experience in providing first class economy and therefore, is also expected to revolutionize and modernize the Indian online retail market and industry by offering a huge variety of selection in comparatively less prices from others in the competition list. However, it is also expected that Amazon may fight back by ensuring that the prices are remaining as competitive. With this, an overall and substantial increase in the consumer demand is also predicted.
This new business deal has surely shifted the focus on the war between online giant retailers Amazon and Flipkart. As per the current status of US giant Walmart, it is currently operating in a total of 21 operational stores in India and with the Flipkart deal in basket now, it is surely going to witness expansion and growth in the Indian Market.