Flipkart launches rural area- and women-focused Flipkart Foundation

 

Walmart-supported local web based business goliath, The Flipkart Group, declared that it has comprised and has sent off the Flipkart Foundation with center around provincial regions and giving fair admittance to learning experiences for ladies and other hindered networks, the Flipkart Foundation means to emphatically affect 20 million lives straightforwardly and by implication in the following ten years.

Flipkart Foundation's activities are award based, with commitments from the Flipkart Group and through the 'Noble cause Checkout' highlight accessible on Flipkart stages, which gives a simple and consistent way for generous giving.

The Foundation was officially sent off in New Delhi by the Union Minister for Social Justice and Empowerment, Dr. Virendra Kumar, Union Minister of State for Micro, Small and Medium Enterprises, Bhanu Pratap Singh Verma and Minister of State for Rural Development and Minister of State for Consumer Affairs, Food and Public Distribution, Sadhvi Niranjan Jyoti, within the sight of Rajneesh Kumar, Chief Corporate Affairs official, Flipkart Group, Krishna Raghavan, Chief People Officer, Flipkart, among other senior authorities from the public authority and Flipkart.

Rajneesh Kumar, Chief Corporate Affairs Officer at Flipkart, said, "The Flipkart Foundation is our obligation to draw in with assorted partners to empower groundbreaking improvement work for society and the economy. We have set venturesome focuses for the Foundation and expect to impact 20 million lives straightforwardly and by implication in the approaching ten years across a wide cluster of regions by using our learnings throughout the long term."

Flipkart to spin-off PhonePe, payments firm to be valued at $5.5 billion

 

Web based business goliath Flipkart is doing an incomplete side project of PhonePe, India's biggest computerized installments stage. The move will enable PhonePe to get to committed, long haul money to finance its development desire.

In this financing round, PhonePe is bringing $700 million up in essential capital at a post-cash valuation of $5.5 billion from existing Flipkart speculators drove by Walmart, the world's biggest retailer. PhonePe contends with opponents, for example, Google Pay, Amazon Pay and Alibaba-sponsored Paytm.

"Flipkart and PhonePe are now among the more noticeable Indian computerized stages, with more than 250 million clients each," said Sameer Nigam, Founder and CEO at PhonePe. "This incomplete side project gives PhonePe admittance to devoted long haul funding to seek after our vision of giving monetary consideration to a billion Indians."

In only a long time since its establishing, PhonePe has crossed the 250 million enrolled client achievement, with more than 100 million month to month dynamic clients (MAU) producing almost one billion computerized installment exchanges in October 2020. It is focusing to cross 500 million enrolled clients by December 2022.

Likewise READ: Optimistic about restoration in Q3, says FinMin in month to month monetary audit

Perceiving the energy that has been accomplished, just as PhonePe's huge development potential, Flipkart's Board verified that this was the ideal chance to mostly turn off PhonePe so it can get to committed money to finance its drawn out desire throughout the following three to four years.

The incomplete side project likewise gives PhonePe an occasion to establish another Board of Directors zeroed in on supporting its turn of events, and to make a customized value motivating force or ESOP program for its workers.

Flipkart will remain PhonePe's greater part investor, and the two organizations will hold their nearby cooperation.

"As Flipkart Commerce keeps on developing firmly serving the requirements of Indian clients, we are energized at the future possibilities of the gathering," said Kalyan Krishnamurthy, CEO of Flipkart Group. "This move will enable PhonePe to augment its potential as it moves to the following period of its turn of events, and it will likewise augment esteem creation for Flipkart and our investors."

Govt wants 'origin of products' displayed, calls e-commerce firms for meet

The Department for Promotion of Industry and Internal Trade (DPIIT) has called web based business majors, including Amazon, Flipkart, Snapdeal and Paytm, for a gathering on Wednesday to examine the 'showing root of the item' on these stages, as hostile to China conclusion gets in the nation.
This follows the Government e-Marketplace (GeM) stage making it obligatory for its recorded venders to indicate the nation of starting point while enrolling every single new item on the entrance.
The outskirt deadlock among India and China has started a crusade here that is picking up force to blacklist Chinese products.The meeting is being composed on a video conferencing stage, as indicated by individuals up to date.
Service authorities said that this issue has come up before and usage issues for e-commercial centers would be talked about at the gathering on Wednesday.
Among different invitees to the conversation are Pepperfry and The E-trade Council of India.
Online business officials said requesting that dealers top off data about 'nation of birthplace' for new postings of items isn't convoluted. In any case, the test is that the a large number of existing items previously recorded on the internet business stages don't have those subtleties and it would be a very "tedious" process for the venders to check the nation of birthplace for those items. Be that as it may, for certain items, this data is now accessible.

"On the off chance that a dealer has 10,000 postings, for him to experience all that and include information is a major errand," said a senior official at an internet business organization. "The expectation of the administration ought not be to discard those dealers off the stage, that would resemble 'slicing your nose to demonstrate hatred for someone (China) else," said the individual.

iQOO 3 smartphone gets a price cut, now starts at Rs 34,990: Details here

Chinese smartphone brand iQOO on Friday cut the price of its flagship smartphone, the iQOO 3. Launched earlier this year, the smartphone comes in three RAM and storage configurations: 8GB/128GB, 8GB/256GB and 12GB/256GB. The 8GB RAM variant with 128GB and 256GB internal storage configurations was launched at Rs 38,990 and Rs 41,990, respectively. The 12GB RAM variant, one with 5G network support, was launched at Rs 46,990.
Now, after the price cut, the – 8GB/128GB, 8GB/256GB and 12GB/256GB will be available at Rs 34,990, Rs 37,990 and Rs 44,990, respectively.
“In cognizance of the difficult circumstance we are all going through due to the global health pandemic, we understand that affordability will be a key concern for consumers going forward. In order to continue with our proposition of offering best-in-class features with 5G capabilities at an affordable price point, we have decided to refresh our pricing, making the iQOO the most cost-effective 5G enabled device in India,” said Gagan Arora, Director-Marketing, iQOO India.
The new prices are applicable from today. However, the phone would be available on Flipkart and company’s online store as soon as e-commerce resume operations, which are currently suspended in view of country-wide lockdown due to coronavirus pandemic.
iQOO has also announced that the iQOO 3 will be one of the first smartphones to receive Android 11 update and regular security and over the air (OTA) updates for 3 years.
The smartphone features a 6.44-inch super AMOLED display with HDR 10+ certification for high-dynamic range video-content playback.

According to the company, the device has the 180Hz Super Touch Response rate, which can improve the screen touch scan frequency by 50 per cent in comparison to screen of 120hz touch response rate.

Flipkart gets stay on insolvency proceedings initiated against it at NCLT

International News
Flipkart has obtained a stay order on insolvency proceedings initiated against the e-commerce firm by the National Company Law Tribunal (NCLT) in a case involving alleged withholding of dues to a seller on its platform.
CloudWalker Streaming, a Mumbai-based supplier of LED TVs, has alleged the Flipkart did not honour its purchase agreement and had not paid dues totalling to Rs 26.95 crore. The firm moved NCLT and had petitioned that Flipkart be recommended for insolvency under Insolvency and Bankruptcy Code (IBC).
On October 24, accepting the petitioner’s argument, the Bengaluru bench of NCLT ordered initiation of insolvency proceedings. Flipkart followed up with a writ petition in the Karnataka High Court and a day later obtained a stay on the NCLT order, a Flipkart spokesperson told Business Standard.In its next hearing held on October 31, the Karnataka HC ordered continuation of the stay. The date of the next hearing has not been set yet. “In view of the above, it is clarified that as on date, Flipkart is not undergoing corporate insolvency resolution process and is continuing its operations on a going concern basis under its present management,” the company said in an email statement.
The matter pertains to an agreement between CloudWalker and Flipkart that dates back to December 2016. CloudWalker, which sells TV under Cloud TV brand, had alleged that Flipkart had signed the agreement to purchase stock worth Rs 103.62 crore but only bought goods worth Rs 85.57 crore, and that too after many delays.After receiving two batches of TVs — in January and March 2017 — Flipkart stopped taking deliveries on the pretext of lack of warehousing space, which in piling up of unsold inventory with the seller, according to claims in the order copy dated October 24 posted on the NCLT website.

Further, “in an attempt to gain profit out of the goods ordered, (Flipkart) coerced the operational creditor (CloudWalker) to offer a discount on the LED TVs, which were already imported and warehoused by the operational creditor on behalf of the corporate debtor (Flipkart)...READ MORE

Flipkart Big Diwali sale: iPhone 7 to Realme XT, the best smartphone deals

Technology
Home-grown e-commerce platform Flipkart is hosting a five-day festive season sale in which it is offering discounts, deals, exchange offers, bank offers, zero-interest equated monthly instalment schemes, etc, on a wide range of products, including smartphones. Named the Flipkart Big Diwali sale, the festive-season sale started on October 21 and will continue until October 25.
In the sale, the e-commerce platform is offering up to 10 per cent instant discount on SBI cards and credit-card EMI transactions. Additionally, Flipkart is also offering a 10 per cent off on select mobile phones on all debit and credit card transactions.
Here is a look at some of the best deals on smartphones:
iPhone 7 (32GB)
Though three generations old now, the iPhone 7 is still a decent choice for someone who wishes to get into the Apple product ecosystem. This smartphone is currently available at a discounted price of Rs 26,999, nine per cent lower than its prevailing retail price of Rs 29,900. Flipkart is also offering no-interest EMI, exchange offer, and Rs 1,000 off on all prepaid orders. Additionally, the e-commerce giant is offering six months of free YouTube Premium access with this phone.
iPhone 7
Realme XT (4GB/64GB)

 The Realme XT is a midrange smartphone with 64-megapixel sensor-based quad-camera set-up on the back. The phone is currently available at Rs 15,999. Flipkart is also offering no-interest EMI, exchange offer, and bank offers on this phone. Additionally, the e-commerce giant is offering six months of free YouTube Premium access with this phone...READ MORE

E-commerce majors Flipkart and Amazon clock bumper sale on Day One

International News
Dispelling the fear that a slowing economy may affect consumer behaviour, e-commerce majors Flipkart and Amazon India have said they witnessed record transactions on their platforms on the first day of their annual festive sale, which started early on Sunday.
While home-grown Flipkart, which is now owned by American retail major Walmart, said it registered two times more sales on Day One of its flagship sale event Big Billion Days (BBD) over last year, rival Amazon claimed it witnessed the biggest opening day sale ever with a huge surge in participation in smaller towns.
According to Amit Agarwal, senior vice-president and country head, Amazon India, the company also saw the single-largest day of Prime sign-ups, with 66 per cent of Prime members shopping in 24 hours coming from tier II and tier III towns. The company added that 91 per cent of new customers were from smaller cities.
“Whether it is the Diwali festival season or any other shopping event, the primary objective for us is to add as many new customers as we can and convert the existing customer into Prime members. We are relevant to customers, no matter the macroeconomic conditions,” said Agarwal.

 According to Flipkart, it saw huge demand in almost all major categories, including beauty, women’s ethnic wear, kidswear, sports, fast-moving consumer goods, baby care, private labels, and furniture on the first day of the sale. The company saw 3x more transactions happening on its platform during early access (from Flipkart Plus customers), compared to last year. The number of transacting customers in tier II and smaller cities doubled over the same period. “We started this festive season by setting audacious targets. By all indication, this is going to be the biggest festive season that India has witnessed,” said Kalyan Krishnamurthy, chief executive officer of Flipkart....READ MORE

Walmart International Q2 operating income declines 29.6% due to Flipkart

Company News

Walmart International, the segment which consists of the retail giant’s operations outside US including retail websites, on Thursday posted 29.6 per cent decline in operational income on a reported basis and 27.3 per cent decline in constant currency, primarily due to Indian e-commerce firm Flipkart.
The Bentonville-based company (in Arkansas) is locked in a battle with US rival Amazon for dominance in India’s online retail market through Flipkart, which it acquired for $16 billion last year in May.
“Walmart International continued to make progress on managing costs and delivered 36 basis points of expense leverage in the quarter. However, operating income declined 27.3 percent in constant currency and 29.6 percent on a reported basis due primarily to the expected dilution from Flipkart as well as the overall gross margin pressure,” said Brett Biggs, executive vice-president and chief financial officer of Walmart Inc.
In May, Walmart had said its reported international operating income in the Q1 declined 41.7 per cent and went down 37.5 per cent in constant-currency terms was on account of Flipkart.
Doug McMillon, president and chief executive, Walmart Inc., said the ecosystem the company is building through Flipkart is impressive and comprises strong businesses. For example, he said Myntra, a leading online fashion destination, recently concluded their largest sale event of the year – the End of Reason sale – where more than two million customers shopped during the four-day period with 7,000 plus orders per minute at peak.

To help fulfill these orders, the Flipkart team partnered with almost 11,000 local Kirana stores to support last mile delivery, said McMillon. This Kirana partner network helped deliver approximately 70 percent of the 8.5 million packages that were fulfilled during the event, he said...Read More

Walmart Q1 operating income declines 41.7% primarily due to Flipkart

Company News

Walmart, the world’s largest retailer, said its reported international operating income in the quarter declined 41.7 per cent and went down 37.5 per cent in constant-currency terms, primarily on account of Flipkart.

The Bentonville-based company (in Arkansas) is locked in a battle with US rival Amazon for dominance in India’s online retail market through online retailer Flipkart, which it acquired for $16 billion last year in May.

“A large part of the decline was due to dilution from Flipkart, which was expected, partially offset by the deconsolidation of Brazil. The timing of Easter also negatively affected operating income versus last year. The full year earnings dilution related to Flipkart is still in line with expectations,” said Brett Biggs, executive vice-president and chief financial officer, Walmart Inc, about the first quarter of FY20 earnings.

Doug McMillon, president and chief executive officer, Walmart Inc, said he continued to be excited about the opportunity he saw in Flipkart and its digital payments company, PhonePe.
“I got to visit our teams in India and China a few weeks ago. I’m impressed with the team and their ability to innovate for customers with speed,” said McMillon.

He was on a crucial visit to India in April to assess the progress made by Flipkart and discuss the strategy to take on its rival Amazon, according to sources.During the quarter, the company returned $3.7 billion to shareholders through dividends and share repurchases. Its level of share repurchases increased significantly year-on-year in Q1.


 Walmart’s operating income in the US grew 5.5 per cent because the gross margin rate was better than expected due to several factors including a better merchandise mix in both stores and e-commerce, and less pressure from transportation costs, partially offset by continued price investments.

Flipkart is back with 'Big Shopping Days' sale, here are the best deals

Company News

India's largest e-commerce firm Flipkart is back with its 'Big Shopping Days' sale. The five-day mega-sale from 15 to 19 May has brought a number of offers and discounts from various brands on appliances, smartphones, television, laptops, speakers, headphones and other products.
The Walmart-owned online marketplace offered early access to Flipkart Plus members at 8 pm on Tuesday and for others, the sale went live at midnight.

Flipkart has mentioned several deals and offers with price cuts and buying benefits on its official website. The e-commerce firm has partnered with HDFC Bank to offer 10 per cent instant discount on using the bank's debit and credit card and EMI transactions. The company is offering Xiaomi’s Mi TV at a discounted price alongside Asus Zenfone Max Pro M2, Nokia 6.1 Plus, iPhone XR, and more.

Here are some of the best deals on the first day of the sale:

Smartphones

Under the 'Mobiles' category, Flipkart has top offers on various smartphones with attractive deals and mobile protection.

Samsung Galaxy J6 (4GB|64GB) has got a massive price cut and will be sold at Rs 9,490. Redmi Note 7 (4GB|64GB) at Rs 11,999 and Oppo K1 (in-display Fingerprint Sensor) at Rs 14,490. Among smartphones under the ‘best price ever’ category are Nokia 6.1 Plus (16MP Selfie) at Rs 12,999 and Infinix Note 5 at Rs 8,999.

 Asus Zenfone Lite L1, which is at Rs 6,999 will be available at a discounted price of Rs 4,999 during the sale. The Lenovo A5 will be priced at Rs 5,499, down from Rs 6,999. The ZenFone Max Pro M2 will be sold at Rs 9,999 than previous of Rs 15,999. Honor 8X will be available at Rs 14,999 as compared to its original Rs 19,999.

Flipkart completes a year with Walmart, launches 'Supermart' in Mumbai

Company News

It has been a year since India witnessed the largest M&A deal in its history. Walmart Inc. on May 9 last year had announced it is buying 77 per cent stake in Flipkart for about $16 billion at a valuation of $21 billion. On Thursday, Flipkart celebrated its one-year anniversary of being part of the global retail giant.

However, a lot has changed in one year. Sachin Bansal and Binny Bansal, who started the company in 2007, have both exited the firm. Close on the heels of Binny’s exit, Ananth Narayanan, the top boss of Flipkart’s branded fashion platform Myntra Jabong, also exited the firm.

While Sachin left immediately after the deal went through, which some say was over issues around leadership and control, Binny’s untimely exit came later. In November last year, Binny announced his resignation as chief executive officer (CEO) of Flipkart Group, effective immediately, following an independent investigation into an allegation of “serious personal misconduct”, Walmart Inc. had said.
However, the senior management at Flipkart believes the company has come out a lot stronger after this transition.

“Flipkart’s partnership with Walmart is helping the group better serve Indian customers and accelerate its growth with products and solutions that solve real problems in the country. These include supply-chain infrastructure that is disrupting the industry to benefit local consumers, suppliers, and manufacturers,” said Flipkart Group CEO Kalyan Krishnamurthy.

Walmart’s India push


 In the last few weeks, Walmart’s top bosses have made trips to Flipkart’s sprawling campus in Bengaluru, reiterating their confidence in the company as well as its management.

Amazon raises stakes for rivals with 1-day delivery goal after profit surge

Company News

Amazon.com Inc plans to deliver packages to members of its loyalty club Prime in just one day, instead of two days, part of a spending ramp-up that may curb near-term profits and will up the ante for retail rivals such as Walmart Inc.

Shares rose as much as 2 per cent in after-hours trade on Thursday as Amazon said faster shipping will come to customers around the world and said its profit more than doubled in the first quarter, trouncing estimates thanks to soaring demand for its cloud and ad services.
The news marks a costly challenge for competitors that will have to pour money into a logistics problem that even the king of e-commerce has yet to solve. Amazon expects to spend $800 million toward the shipping goal in the second quarter alone.

"There's a lot of error bars around this programme, especially from the cost side," Amazon's Chief Financial Officer Brian Olsavsky told analysts on a conference call. "We (are) again, trying to take advantage of the fulfilment capacity and transportation capacity, especially with third-party partners, that we have."

While Olsavsky did not provide a concrete timeline for the program's rollout, he said, "We expect to make steady progress quickly and through the year."

US rivals Walmart and Target Corp have steadily rolled out two-day shipping, albeit on far fewer items than Amazon Prime customers can get at that speed for $119 a year in the United States. Olsavsky said the "vast majority" of Amazon's selection is available in two days, and the company has already expanded the number of goods eligible for same-day and two-hour delivery.


 "Amazon is cranking it up a notch, trying to set themselves apart," said Cathy Morrow Roberson, a former UPS analyst who founded consulting firm Logistics Trends & Insights....Read More

After Moglix, Flipkart CEO Kalyan Krishnamurthy bets big on UrbanClap

Company News

Flipkart Chief Executive Officer (CEO) Kalyan Krishnamurthy has put Rs 1.6 crore in UrbanClap, the Gurugram-based home services start-up, company filings sourced from business intelligence platform paper.vc showed.

Krishnamurthy, a former Tiger Global top executive, will also act as an advisor to UrbanClap, a source with direct knowledge of the development said.

In March, Krishnamurthy had invested in B2B e-commerce firm Moglix in a similar fashion. It is not immediately clear whether the investments are a precursor to potential business partnerships between Flipkart and either of Krishnamurthy’s investee companies, but the new deal lays bare his strategy to back companies with a proven e-commerce track records.

UrbanClap declined to comments for the story while Krishnamurthy could not be immediately reached for his comments.

Company filings dated April 5 showed, Krishnamurthy was allotted 310 equity shares in Urbanclap Technologies India for Rs 51,551 apiece. The investment is part of the firm’s $50 million series D round that closed in November, according to the source cited above. The said round was led by Steadview Capital and Vy Capital.

“We believe that UrbanClap is likely to raise a massively large round at a premium equal to or higher than the 51K that Kalyan paid," said Vivek Durai, founder of paper.vc. “UrbanClap is in a small tier of venture-backed start-ups that have displayed conventionally great financial performance.

 FY18 numbers show a 14% reduction in losses and a 225% increase in revenue. There is no reason to believe that graph will not continue into 2019.”...Read More

Flipkart India's most preferred workplace; Amazon, Oyo come next: LinkedIn

Company News

Walmart-owned Flipkart is the most preferred workplace in India, followed by Amazon and Oyo in the second and third places, respectively, according to a list compiled by professional social media network LinkedIn.

Internet companies dominate the top 10 spots in LinkedIn's fourth edition of the '2019 Top Companies' list for India.

IT giant Tata Consultancy Services (TCS) made its debut at the seventh place, new entrants and homegrown internet and consumer services companies Swiggy and Zomato were ranked sixth and eighth, respectively.

Uber, another new entrant, took the fifth spot, while, One97 Communications was at the fourth rank and Oil and Energy conglomerate Reliance Industries was at the 10th place.

Others on the list include consulting firm Boston Consulting Group (BCG) at 13th, Yes Bank (14), IBM (15), Daimler AG (16), Freshworks (17), Accenture (18), Ola (19), ICICI Bank (20), PwC India (21), KPMG India (22), Larsen & Toubro (23), Oracle (24), and Qualcomm (25).

"This year, half the companies are new entrants on the list, including IT giants such as TCS and IBM that showcase the changing job and hiring landscape," said LinkedIn India Managing Editor Adith Charlie.

Charlie further said that "the presence of more blue chip Indian companies such as Larsen & Toubro and Reliance Industries, among others emphasises the fact that these large firms are getting better at attracting millennials employees".


 The report further noted that majority of companies on the list made maximum new hiring for engineering jobs followed by operations and business development.

Walmart CEO unfazed by new e-commerce law; hopeful of future with Flipkart

Companies News:

Walmart, the world’s largest retailer, it was “disappointed with the recent change in law and lack of consultation” with regard to the new e-commerce regulations in India. But, it was confident of the long-term prospects of its India unit, Flipkart.

The Bentonville-headquartered company, which announced its 2018-19 (Walmart follows the February-January financial year) results on Tuesday, got a major leg up from Flipkart in its gross sales, despite divestment of its Brazilian unit. However, its operating income and profitability took a hit due to continued investment in its Indian subsidiary.

“In terms of the regulatory environment in India, we are disappointed with the recent change in law but the team is working to ensure we are in compliance with the new rules. We hope for a collaborative regulatory process in the future. This will result in a level playing field,” said Doug McMillon, president and chief executive officer, Walmart, during an analyst call.

The change in e-commerce policy came into effect from February 1. It bars e-commerce companies from selling products through firms in which they have a stake. Companies operating in this space also cannot earn more than 25 per cent of total revenue from a single platform.

McMillon, however, said the new regulations have not shaken Walmart’s “confidence and excitement” about Flipkart’s long-term prospects as the business has behaved in line with their expectations.


 The company, he said, remained optimistic about India’s e-commerce opportunity, given the size of the market, the low penetration in the retail channel, and the pace at which it was growing.

Were Jeff Bezos' plans to dominate Indian e-commerce ambushed by Ambani?

Companies News:

Amazon.com and Walmart Inc.’s plans to dominate India’s online retail landscape have been ambushed by Prime Minister Narendra Modi’s political priorities heading into a tightening election.

The vote, which must be held by May, has increased the influence of local retailers that lobbied for growth-crimping curbs on the U. S. giants. On cue, India this month rolled out constraints on foreign e-commerce players including Amazon and Walmart-owned Flipkart, which together control 70 percent of its online shopping. The tighter rules, aimed at protecting small traders, may end up benefiting the country’s richest man, Mukesh Ambani, who is building a home-grown competitor.

Modi’s Bharatiya Janata Party is still licking its wounds after being trounced in three key recent state polls and a year ago fighting an unexpectedly close contest in Gujarat -- Modi’s home state. Among small businesses, which are a traditional support base, the government’s popularity has been eroded by 2016’s surprise cash ban and the subsequent chaotic roll out of a new sales tax.

The rules now bar Amazon and Flipkart Online Services Pvt. Ltd. from owning inventory, and require them to treat all vendors equally, throttling discounts and exclusives -- a huge advantage to homegrown companies including Ambani’s new venture. His Reliance Industries Ltd., which owns India’s largest retail chain and third-biggest telecom network, has the potential to evolve into a local version of Amazon or Alibaba Group Holding Ltd., UBS AG said last month.


 “Whether serendipitous or not, India’s tightened regulatory regime for online retailers is a huge win for Reliance with its new retail ambitions,” said Sanchit Vir Gogia, chief executive officer of consultancy Greyhound Research. “This could be a field leveler for them..Read More

Walmart, Amazon shape online sellers lobby to fight new e-commerce rules

Companies News:

Hit by the latest e-commerce rules, American majors Walmart and Amazon are planning to pitch the sellers on their Indian platforms against the domestic lobby groups such as the Confederation of All India Traders (CAIT) and Swadeshi Jagran Manch (SJM), it is learnt.

The newly renamed Department for Promotion of Industry and Internal Trade (DPIIT) had last week clarified that there would be no extension to the February 1 deadline for e-commerce firms to comply with the conditions related to the FDI policy in the sector (known as Press Note 2), triggering panic among prominent online firms such as Amazon India and Walmart-owned Flipkart.

Since CAIT and SJM have been pushing the government for an e-commerce policy that keeps in mind the interests of traders, the foreign majors are trying to get their sellers together and put forward their cause. Since the two biggest e-commerce companies have been adversely affected by the new conditions in Press Note 2, they are arming themselves with a parallel lobby group represented by sellers ahead of a proposed e-commerce policy.

The financial hit


 DPIIT’s move to not extend the February 1 deadline has had an adverse affect on business as both Amazon India and Flipkart have had to cut down their number of sellers by as much as 30 per cent. They have had to slash sales in almost 60 categories involving 45 million products...Read More

Reliance vs Amazon: Can Bezos beat Ambani without getting bruised?

Companies News:

The battle for the Indian consumer was never going to be an all-American affair.
Walmart Inc.’s splashy acquisition last year of Flipkart Online Services Pvt., the homegrown e-tailer giving Amazon.com Inc. a solid run for its money, might have given the impression of a two-horse race. But as I argued (here and here), billionaire Mukesh Ambani wasn’t going to watch from the sidelines.

And last week India’s richest man jumped right into the fray. Ambani, chairman of the petrochemicals-to-telecom conglomerate Reliance Industries Ltd., has a four-legged plan to connect India’s 30 million small retailers with consumers. One, neighborhood marts will be connected to Reliance Retail Ltd.’s footprint of almost 10,000 stores, offering them common inventory-management, billing and tax platforms as well as low-cost payment terminals. That will give the expanded retail network formidable sourcing power.


 The second hook is Ambani’s telecom business. Consumer e-commerce in India is dominated by the urban middle class. Out of the country’s 500 million Internet users, almost 200 million live in rural areas where one out of four goes online less than once a month. No wonder the number of online consumers, while growing rapidly, is expected to be only about 120 million this year. Reliance Jio Infocomm Ltd. alone has 280 million digital subscribers...Read More