Flipkart and Walmart, one with a strong presence in the Indian online space and the other is the largest company in the world, by revenue, are teaming up to prepare for the forthcoming festive sale.
It doesn’t take a genius to figure out that this pair-up will affect the likes of Amazon and Snapdeal, who have similar sales on the same dates.
One company that will take the biggest hit due to this collaboration and probably the reason behind this new team, Amazon will most definitely feel the growing heat.
So far, there is no confirmation regarding the pair-up but the companies haven’t denied the rumours either.
According to a report by The Economic Times, the companies are conducting early talks and will probably meet later this week for a final strategy.
The collaboration can come in shape of an equity partnership, where Walmart might end up buying a minority stake in India’s largest ecommerce network.
Apart from the added capital, Flipkart might be able to tap into Walmart’s wholesale network as pick and drop stations to tackle massive surge in demand and supply during the sale.
If the partnership comes to fruit, Walmart will get a chance to enter the mega-sector of ecommerce in India.
Despite being the biggest retailer in the world, Walmart lags behind Amazon in the online space. Adding funds to its rival, Flipkart’s arsenal is a great way to keep a check on Amazon’s success in a major market like India.
Flipkart, Amazon and Snapdeal, the biggest guns of ecommerce in India will be fighting for the huge festive season demand.
With giants like Walmart trying to enter the ecommerce segment in India, it is evident that the online space will soon witness a huge influx of new players vying for the attention of Indian consumers.