Fibre2Fashion Magazine June 2018 June 2018

But it’s not the existing size of the market that would have lured in Walmart. After all, according to a different estimate (by eMarketer), Indian retail e-commerce sales in 2017 were only $21 billion compared to $1.11 trillion in China. The same estimate believes that India’s e-commerce sales will jump 141 per cent in the next four years alone—it’s the market to be in. Walmart’s strengths lie in logistics, sourcing and supply chain management, and it has not been able to capture the e-commerce market in the way that it dominates retail—its own online sales are a little over 3 per cent of its business in the US. In contrast, close to half the total e-commerce market in the US is controlled by Amazon. With the Flipkart acquisition, Walmart would According to Walmart’s own investor presentation, India’s e-commerce market want to bridge the physical-digital gap, and is expected to grow four times faster than overall retail over the next five years. India would be the testing ground. Walmart’s current presence in India is limited to its 21 cash-and-carry stores and one fulfillment centre in 19 cities across nine states. It had entered India in 2009 through a joint venture with Bharti Enterprises, and took full control in 2013. As things stand now, Walmart plans to support small businesses through direct procurement as well as by increased opportunities for exports through global sourcing and e-commerce. “Among other initiatives, Walmart will partner with kirana owners and members to help modernise their retail practices and adopt digital payment technologies,” the company said in a statement. Walmart also plans to launch another 50 new cash-and-carry stores in the next 4–5 years. All speculations were set to rest on May 9 when the big announcement came: that Walmart would be paying a whopping $16 billion for a 77 per cent stake in the Indian company. Photo shows 447-C, 12th Main, Koramangala—the house where Flipkart was born. Pic courtesy: Flipkart JUNE 2018 FIBRE 2 FASHION | 43

Fibre2Fashion Magazine June 2018 June 2018 | Page 43