Saturday 28 April 2018

Who will acquire Indian E-com giant Flipkart? | Amazon or Walmart

Retail & E-Com Giants Acquisition (Walmart + Flipkart) Vs. Amazon


Walmart the biggest giant of retail and Flipkart the fastest growing E-commerce Market Place are in the mode of creating a synergistic effect for the whole world. Walmart is going to buy 51% stake in Flipkart valued $20 billion. It will be called as biggest US giant acquisition of an online retail business.


Current Traditional Retail Market Place:

Brick and Mortar concept is not going to die anyway in India. The current retail Industry is $680 billion and expected to grow by $1.1 Trillion by 2020.

E-Commerce Future India:

Current online business in India is $15 Billion and expected to grow exponentially 1200% to $200 Billion till 2026.

Some Facts You Should Know:

  • Last year Walmart was in talks with Amazon. Amazon was ready to invest $5.5 billion in India but finally this year Walmart was in Deal with flipkart's 51% stakes

How Walmart Will Be Benefited From This Deal?

  • Walmart will be world's largest retailer (Traditionally and Digitally both)
  • Substantial foothold in the emerging market of 1.3 billion people    
  • India is the next big potential area after US and China

Challenges Faced by Walmart To Acquire Indian Market:

  • Currently, India has not adequate supply-chain facilities which are required to become a standard services
  • Less basic infrastructure for faster delivery of high-quality goods
  • Regulatory hurdles
Flipkart is valued at $12 Billion and Walmart is about to close the deal for $20 billion because it is India's most valuable startup and it has the widest presence and symbol of Trust in India.

Facts Behind The Acquisition Of Flipkart & Not Amazon:

  • Walmart is struggling from Amazon because consumers are increasingly migrating to E-Commerce
  • Walmart and Amazon both are foreign Players in India so Flipkart is the best option to deal because it is the most valued startup in India
  • Matter of trust is always there with Flipkart in India 


   Conclusion

  • If the deal goes done this will be the revolutionary acquisition of India, and the US both because it will create the synergistic effect. 
  • Walmart share will increase from 46% to 64% and overall revenue will increase by .7%. 
  • In India, 100% FDI is allowed for online retail. 
  • Flipkart acquisition clearly positions the retailer as a direct rival to Amazon. 


21 comments:

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