The Walmart-Flipkart deal which is making a buzz these days is sure to encourage the battle of Indian e-commerce, a two way game between Amazon and Walmart. Amazon’s big-ticket investment and Walmart’s acquisition plan would be tested in their race towards winning the Indian market.
India’s billion dollars’ worth of retail and e-commerce market makes a good bit of reason for Walmart to fight it out of their skin especially when you consider their slow progress in India even a decade after their entry into the country. Amazon, on the other hand, is desperate to make a cut in the Indian market considering their defeat in the Chinese market.
Amid this battle of supremacy, concerns are also raised in regards to the development of India’s innovation led internet economy and the fear of it becoming a digital colony are also making rounds in the discussions.
Google adds strength to Walmart
With Google on its side, Walmart has an advantage of partnering with a Global player that has experience of handling cut-throat competition. Common intentions and desire for stakes in the Indian market make Google a natural partner of Walmart.
Walmart’s move to invite Google to hold minority stakes in its Flipkart acquisition plan goes pretty much in line with Google’s India policy. Talking the other way around is the story of enemy’s enemy being one’s friend. Google and Amazon face each other as platforms for fulfilling shoppers need. The former does it through ads and search whereas the latter utilizes its e-commerce platform for the same. In that sense, partnering with Walmart is a good move on Google’s part to take down Amazon in the Indian market.
Amazon’s Investment and strategy can create issues
Though Walmart and Google’s partnership looks stronger Amazon with its India winning strategy and big term investment would not be far behind in the contest. Acquiring an established brand in face of Flipkart though give an edge to Walmart, however, can’t nullify the competition that Amazon puts.
Amazon’s strategy has a blend of thinking globally but acting locally. Its ground research of Indian market and study of needs of Indian internet economy along with customer’s choice makes it a tough contender to beat. Apart from that, Amazon’s commitment in terms of R&D can be highlighted from the fact that its second largest development centre outside the USA lies in Bangalore, India.
With investment plans of up to $ 5 billion backing, its strategy Amazon has got a secured and practical capture India policy. Walmart which has been fighting it out with Amazon in the USA would utilize its experience with JD.com in China to tackle Amazon’s India policy.
All to watch for
The interesting set up of Walmart-Amazon’s cutthroat competition in India is all but a game to watch for players not only domestically but internationally as well. Firms who are looking to make inroads in Indian internet economy would be watching this battle with close eyes.
Experts say that it would be too early to predict a winner when the battle is evenly balanced. It would be all to watch for competition before an undisputed winner is crowned that has the ability to rule the Indian e-commerce market. Till then making assumptions and predicting the future course of action is all that can be done.