 "Retail")
It’s not the end of the year yet and may therefore be too early to give a verdict. But 2018 has seen enough disruption in the retail space already to possibly determine the landscape of the sector in the months and years to come.
If Jack Ma is hanging up his boots at Chinese e-commerce major Alibaba in a surprise transition, two American giants, Walmart and Amazon, are scripting changes in Indian retail like never before. Adding suspense to the game are players like Mukesh Ambani’s Reliance Industries, which is preparing to roll out e-commerce with the power of Jio, and others such as food delivery startup Swiggy, which is planning several dark pods to host grocery stores and pharmacies.
Indeed, Walmart’s acquisition of Flipkart, after much boardroom twists and turns played out across continents, stands out as a real game-changer. Not just because the largest retail chain of the word was betting big on India, but also because the deal pegged the value of India’s decade-old startup at around $20 billion—an unthinkable number so far. Doug McMillon-led Walmart struck the deal for $16 billion to buy 77 per cent in Flipkart. It also meant Flipkart’s star founder Sachin Bansal stepped down hurt but richer by at least $1 billion.
While the retail piece was still building up around the Walmart-Flipkart story and the tax liabilities that may follow, Amazon was readying its ammunition to take on its American rival Walmart as well as the one it has fought in Bengaluru ever since it entered India—Flipkart. Amazon recently announced its vernacular initiative to go deeper into India in the languages that the country understands. The idea being online shopping or buying stuff on smartphone was not just an elite activity anymore but was something that masses aspire for. Amazon, in other words, wants to go where nobody has gone before. Along with the language war-chest, the Seattle-based e-commerce major is seriously exploring tie-ups to get a foothold in physical retail. From big boys such as Kishore Biyani’s Future and Aditya Birla group’s More to thousands of corner stores (kirana outlets), it’s looking to cover all ends. And, so far the India game plan for the Jeff Bezos-led company has been one of “open cheque’’, having already invested $5 billion with promise to spend as much as it takes.
If Jack Ma is hanging up his boots at Chinese e-commerce major Alibaba in a surprise transition, two American giants, Walmart and Amazon, are scripting changes in Indian retail like never before. Adding suspense to the game are players like Mukesh Ambani’s Reliance Industries, which is preparing to roll out e-commerce with the power of Jio, and others such as food delivery startup Swiggy, which is planning several dark pods to host grocery stores and pharmacies.
Indeed, Walmart’s acquisition of Flipkart, after much boardroom twists and turns played out across continents, stands out as a real game-changer. Not just because the largest retail chain of the word was betting big on India, but also because the deal pegged the value of India’s decade-old startup at around $20 billion—an unthinkable number so far. Doug McMillon-led Walmart struck the deal for $16 billion to buy 77 per cent in Flipkart. It also meant Flipkart’s star founder Sachin Bansal stepped down hurt but richer by at least $1 billion.
While the retail piece was still building up around the Walmart-Flipkart story and the tax liabilities that may follow, Amazon was readying its ammunition to take on its American rival Walmart as well as the one it has fought in Bengaluru ever since it entered India—Flipkart. Amazon recently announced its vernacular initiative to go deeper into India in the languages that the country understands. The idea being online shopping or buying stuff on smartphone was not just an elite activity anymore but was something that masses aspire for. Amazon, in other words, wants to go where nobody has gone before. Along with the language war-chest, the Seattle-based e-commerce major is seriously exploring tie-ups to get a foothold in physical retail. From big boys such as Kishore Biyani’s Future and Aditya Birla group’s More to thousands of corner stores (kirana outlets), it’s looking to cover all ends. And, so far the India game plan for the Jeff Bezos-led company has been one of “open cheque’’, having already invested $5 billion with promise to spend as much as it takes.
