What changes will we see now that Walmart has purchased Flipkart? - letsdiskuss
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Sameer Kumar

Software engineer at HCL technologies | Posted on | News-Current-Topics

What changes will we see now that Walmart has purchased Flipkart?


System Engineer IBM | Posted on

After months of rumors and speculations, the deal between Walmart and Flipkart is finally set. Walmart has acquired 77 percent stake in Flipkart at $16 billion. This is billed as the biggest e-commerce deal to date. Needless to say, the development will completely shake the entire Indian online retail scene. This will also give a big ***** to Amazon that has been aggressively expanding in the Indian market. Imagine now—Walmart vs Amazon, we would get to see this battle at home. 

Now, what changes we can see in the coming days out of this deal can only be guessed. But there are few things that look evident and imminent. 

Walmart CEO Doug McMillon has said that Flipkart won’t become Walmart. However, taking his words at face value would be quite absurd—not at least when you’re thinking of long-term. Walmart is notoriously known to sell its own private label products at cheap prices. This poses a serious threat to the Flipkart sellers, who have already voiced their concerns. How can they compete with $500 billion worth giant by lowering their price when many of them are already struggling with marginal returns! 

Talking from the customers’ perspective, it’s all good news for them. Walmart, with Flipkart, will bring them high-quality products at even cheaper rate. And what more they can want. And if ever Walmart opens its trademark stores in India, the large resource of Flipkart could be extremely helpful for it. Also, Walmart has great logistic and transportation experience. It can effectively cut back on the middlemen and provide products to consumers directly from the farmers. This can greatly help the farmers. 

Again, the details of Walmart Flipkart deal are still not very clear. What is their strategy, how Walmart will help Flipkart grow, how Flipkart will help Walmart grow, how their expansion strategy will change in the coming years—these are some of many questions that remain unanswered. As we move forward and get more details about this mammoth e-commerce development, we would know exactly who will be most benefitted and who not. not.