WAL-MART STORES INC. TO MAKE A MOVE IN INDIA’S HIGHLY
COMPETITIVE E-COMMERCE MARKET
WalMart Stores Inc. is considering
making a big move in India’s lively and
highly competitive ecommerce market.
The retailer is weighing an investment
in Flipkart Ltd., India’s largest online
marketplace by sales.
It would also give Flipkart needed
capital and a partner in its battle against
Amazon.com Inc. over online sales in
the South Asian nation. Amazon and
other Western companies have turned
to India as China’s economy slows, but
expansion there has been problematic.
Although the potential market is large,
tough local regulations and poor
logistics remain major hurdles. Only
about 4% of India’s population regularly
shops online, and several startups have
faltered in the fierce and fundsapping
competition for business.
The investment advances WalMart’s
broader strategic drive by putting its
money behind ecommerce growth. The
retail giant is reportedly in talks to invest
up to $1 billion in Flipkart, the top e
commerce firm in a market that Walmart
has repeatedly failed to crack. Amazon
has made significant investments in
India, with founder Jeff Bezos recently
funneling $3 billion into his company's
operations in the country. It's a cash
infusion that builds on the $2 billion he
committed in 2014.
Flipkart's local knowledge may give it
the edge, however, in a market that
Deloitte predicts will be worth $100
billion a year by 2020.
Source: W.S.J &
C.N.N