Flipkart’s ‘Big Billion’ sale to Walmart: What it means for users and more
The $16 billion acquisition of Flipkart by Walmart could very well be a turning point in the e-commerce industry in India. Not only it pits two of America’s biggest retail giants against each other, it has a lot at stake for Indian customers also. While there are multiple facets of the acquisition and what it means for various stakeholders – directly and indirectly – associated. Here we take a look at what it means for rival online buyers in India, how it will impact Amazon and what effect it could have on the e-commerce market.Read more ↓
For online buyers: More sales, better discounts
For the consumers, it’s a big bonanza as the intensified competition will mean better deals, sales and offers. Indian consumers have had it really good with e-commerce giants’ sales like Big Billion Days or the The Great Indian Sale and we might just see them happening more frequently.
For online buyers: Saved from monopoly
Although there was little chance of Amazon buying Flipkart, if the deal had gone through then the former would’ve enjoyed a near monopoly from the market. In the long-run, it would’ve meant not a good deal for the consumers, so the deal is a boost for them.
For online buyers: International brands, low prices
Consumers also stand to get access to more international brands now with the entry of Walmart in e-commerce space. Amazon already has its Global Store and now Flipkart too should get a similar option on its platform, courtesy Walmart. Low prices are also expected from both giants in order to woo more customers.
For online buyers: Better service, faster delivery
While Amazon has changed the game – for its Prime members at least – by offering one-day delivery for a large number of the products it sells. In terms of service, online buyers stand to get better options and even faster delivery of products. After price, service is one of the biggest differentiator in the Indian e-commerce market.
For Amazon: Stiffer competition
Amazon has been giving a tough run for its money to Flipkart in the last few years. Now with deeper pockets courtesy Walmart, Amazon will face tougher competition. Although Amazon has more sellers (300,000) compared to Flipkart (100,000), Walmart will bring in its years of retail expertise.
For Amazon: Heats up global rivalry with Walmart
Globally, Amazon and Flipkart have been rivals and the deal extends it to India. Amazon is a big market for India as it has shown with the considerable investments it has made over the years. Walmart, on the other hand, has been present in the country for years but hasn’t made any significant headway. The acquisition of Flipkart is set to heat up the rivalry between the two retail giants.
For Amazon: More open to acquisitions in India
While Amazon did make a late push to buy Flipkart, that acquisition was never going to happen for multiple reasons. However, Amazon has been making investments in companies – including BankBazaar, gifting platform Qwikcilver – but never made a big acquisition. The Walmart-Flipkart deal might just spur the Jeff Bezos-led company to do acquisitions.
For Indian e-commerce market: Dominated by two of US’s biggest companies
The American takeover of e-commerce market is almost complete. While Paytm and Snapdeal continue to be around, it’s clear that battle lines will be squarely drawn between Walmart and Amazon.
For Indian e-commerce market: Nervy times for online sellers
Walmart is known to ‘kill’ off small businesses with its ultra-competitive pricing. The American retail giant is expected to bring its own brands which might not spell good news for online sellers.
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