oppn parties Walmart's Entry: Exciting Times For Ecommerce Marketplace

News Snippets

  • Flipkart assures employees that there will be no job or salary cuts due to the COVID-19 pandemic
  • Although it was obvious, but the government still clarifies that there is no need to switch off appliances and only lights need to be switched off on April 5 at 9pm after confusion in the minds of some people
  • PM Modi and President Trump decide "to deploy full strength of (Indo-US) partnership" to fight against COVID-19
  • 17 states have reported 1023 cases of coronavirus linked to the Tablighi Jamaat, which translates to 30% of all positive cases in India
  • The government says people should not use alcohol-based hand sanitizers before lighting diyas or candles on April 5
  • The railways say there is no certainty yet when services will resume after the lockdown and a final decision will be taken in the next few days
  • As coronavirus cases multiply in Assam, six north-east states seal their borders with the state
  • Power System Operation Corporation Ltd. (POCOSO) putting all systems and protocols in place at war-footing to ensure there is no grid failure due to reduction in demand on April 5 at 9 pm
  • Power ministry scotches rumours that the power grid might fail due to the 9-minute blackout called by PM Modi on Sunday, April 5
  • Centre asks people to wear home-made masks if it is absolutely essential for them to step out of homes
  • Centre asks states to allow licensed street vendors to sell essential items
  • 8000 samples were tested across India on April 2, but the government said that testing will be need-based and will not be used as a confidence-boosting measure
  • Air India operating special flights to fly passengers stuck in India since the lockdown
  • For the first time in history, Darjeeling loses first flush tea due to suspension of garden work for Covid-19 outbreak
  • Supreme Court asks journalists to be responsible and publish only the official version of news after it was brought to its notice that migrant exodus started after the 'fake' news that the lockdown will be extended to three months
Total count stands ar 3082 as India records 16 Covid-19 deaths, the highest in a single day
oppn parties
Walmart's Entry: Exciting Times For Ecommerce Marketplace

By Sunil Garodia
First publised on 2018-05-08 19:12:39

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
With Walmart certain to buy out Flipkart from its promoters, how is the Indian B2C ecommerce space going to pan out in the near future? The importance of the deal can be gauged from the fact that the other big player in the field, Amazon India, made a last ditch attempt to ward off competition by making a bid of its own. If Amazon had been successful, it would have created a huge platform for sellers but it would also have denied them the benefits competition brings. Now, with two foreign players with very deep pockets fighting out in a nearly bottomless market (as internet penetration is low and buying habits are changing slowly, especially in the fast emerging grocery and daily essentials space), the sellers on the aggregating platforms will have a lot of leeway.

On the other hand, WalmartÂ’s entry might sound the death knell for smaller all-purpose aggregators. They will neither have the resources nor the infrastructure to match the might of these two giants. Customer acquisition and retention is a very costly affair in the ecommerce space. Hence, competing with Amazon and Walmart-acquired Flipkart will be impossible for smaller players. Only those who deal in niche products, like Urban Pro and Pepperfry in the furniture space for instance, can hold their own. Even Big Basket and Grofers will feel threatened as Amazon is investing hugely in its online grocery store Amazon Pantry and Walmart is sure to do the same in Flipkart, maybe by spinning off a sub-brand like Amazon. Although Paytm, backed by the Chinese behemoth Alibaba, can emerge as the third big player, as of now it is concentrating more on its wallet and payment bank services and aggregating merchants through Paytm Mall, as seen by the products on its platform and promotional activities, is low on its list of priorities.

As restrictions ease, regulations stabilize and cities and towns get clogged with traffic, ecommerce is likely to corner a large share of the market, at least for electronics, apparel and grocery. Couple this with rising sales of niche players in furniture, jewellery and grocery, along with the already huge share of the online travel players and the picture is complete. Further, new areas are also emerging and are instantly hitting it off with the consumers. Online pharmacies are fast changing the way people buy medicines, with Netmeds, 1mg and Pharmeasy being the early movers. As home-grown players capture market share for these niche products, one is sure foreign players will start eyeing them. Hence, another round of acquisitions might take place just a couple of years from now.

pic courtesy: yespunjab.com