Amazon is going great guns in India, and its success story is just extraordinary. Buoyed by its success, Amazon has pumped in more than Rs. 115 crore in preparation for the coming festive season. Amazon’s ride to glory will surely upset its main rival in India which is Flipkart. Its competitors are getting ready to take on this formidable opponent.
Reports hint that Walmart Stores Inc is trying to partner Flipkart and take on a traditional rival, Amazon in India. An equity partnership is in the offing, and a meeting is scheduled to take place this week. There are talks about Walmart picking up a minority stake in Flipkart.
Amazon is also locking horns with Wallmart in the US and is slowly but steadily capturing global markets. Wallmart Stores Inc is not going down without a fight and is upping the ante by buying minority stakes in retail companies and startups. It acquired 5% stake in JD.com in China and is now focusing its attention on India which is a growing market.
The deal will be very beneficial for both the partners. Things are not like as they used to be with the valuation of Flipkart going down and partnership will bring in a fresh influx of funds which will help it compete against a formidable opponent, Amazon. Flipkart will also take advantage of the Walmart supply chain across the globe and use it as pickup and delivery points.
Wallmart will also benefit immensely with its association with Flipkart in India. Although it has a presence in India, it is nothing as compared to the roaring success of Amazon. With this deal, it will get a better reach in the Indian market and enable it to sell its wares through multiple channels. Things are not well at Walmart in the US, and it is facing sluggish growth. Entry into emerging markets like India will enable it to take care of its falling fortunes.