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Why Walmart is interested in India’s biggest online retailer
Walmart is taking another canada goose store run at breaking canadian goose jacket into the Indian market this time by writing a fat check. The retail giant is reportedly in talks to invest up to $1 billion in Flipkart, the top e commerce firm in a market that Walmart has repeatedly failed to canada goose crack.
Both companies declined to comment on negotiations.
But the rationale for a deal is compelling: Walmart (WMT) would gain access to 1.3 billion consumers in a market where it currently canada-gooseoutlets has very limited operations. Flipkart would canada goose coats get the cash it needs to fend off a pack of hungry rivals.
“Walmart Canada Goose Online will have to learn how Indians shop here, because it buy canada goose jacket cheap is very different from the way it happens in the developed markets,” cheap Canada Goose said Krishnarajan Nedungadi of Indian retail consultancy Ramms. “Flipkart knows how it happens here.”
Related: Walmart is making a comeback
A new local partner may be just what Walmart needs.
The Canada Goose online Arkansas based retailer lobbied for canada goose black friday sale years for permission to open its own brick and mortar stores in India, but the country’s restrictive rules on foreign investment made that impossible. Another attempt to gain a foothold a joint venture with Bharti Enterprises also failed to gain traction before it was abandoned in 2013.
Walmart has since been relegated to operating 21 wholesale distribution outlets in the canada goose coats on sale country. It is not allowed to sell products directly to consumers.
Related: India isn’t just growing fast, it’s much more competitive
But e commerce presents a new opportunity. canada goose uk outlet And Flipkart, canada goose clearance which was valued at $15 billion cheap canada goose uk in its most recent round of funding, is the leading force in a market that also features key Canada Goose Jackets Walmart rival Amazon (AMZN).
Amazon has made significant canada goose clearance sale investments in India, with founder Jeff Bezos recently funneling $3 billion into his company’s operations in the country. It’s a cash infusion that builds canada goose uk shop on Canada Goose sale the $2 billion he committed in 2014.
Flipkart’s local knowledge may give it the edge, however, in a market that Deloitte predicts will be worth $100 billion a year by 2020.
“Companies coming into India have to create trust,” says Kumar Rajagopalan, CEO of the Retailers Association of India, who said the country’s complex FDI regulations and myriad tax laws are sometimes “worrisome” for large foreign firms.
But Nedungadi said that in the short term, the entire industry may benefit from Walmart’s delivery and logistics expertise.
“The industry will benefit, because a lot of back end canada goose uk black friday delivery issues will get sorted out,” Nedungadi said. “With large players trying to attract a lot of new customers into the fold, Amazon will also benefit.”
CNNMoney (Hong Kong) First buy canada goose jacket published September 30, 2016: 9:58 AM ET
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