Indian Online Retail Ecosystem - a Study on Flipkart Deal with Walmart

International Journal of Research and Analytical Reviews (IJRAR), 2019

4 Pages Posted: 1 Oct 2020

See all articles by Aruna Polisetty

Aruna Polisetty

GITAM University, Visakhapatnam - Department of Finance

Vijaya Kittu Manda

Gandhi Institute of Technology and Management (GITAM), Institute of Management; GITAM Deemed to be University

Naveenan R.V.

Vivekananda Institute of Management

Date Written: March 5, 2019

Abstract

US retail giant Walmart acquisition of 77% controlling stake in Flipkart in May 2018 has set a new chapter in the Indian online retail market. The deal gave the much-needed confidence to online retail stores who are already cash starving after giving away highly competitive deals and offers for the Indian shoppers. Walmart wishes to use this opportunity to enter the India market where its global competitor Amazon is already present. On the other hand, Flipkart wishes to use the much-needed cash infusion to smoothen out its operations and to get access to international markets. This research article is an attempt to study the dynamics of the Indian online retail industry and factors contributing and determinantal for its growth. The Walmart style of going global is examined and why this Indian acquisition is important. The Flipkart story is examined to understand how it rose from being a simple online bookseller to become gigantic challenging even global giants. This study is of significance in understanding the dynamics of the online retail sector and derives implications for various stakeholders.

Keywords: Online Retail, Online Shopping, Retailing, Acquisition, Walmart, Flipkart, Amazon

JEL Classification: G34, G31, M21, M31

Suggested Citation

Polisetty, Aruna and Manda, Vijaya Kittu and Manda, Vijaya Kittu and R.V., Naveenan, Indian Online Retail Ecosystem - a Study on Flipkart Deal with Walmart (March 5, 2019). International Journal of Research and Analytical Reviews (IJRAR), 2019, Available at SSRN: https://ssrn.com/abstract=3347069

Aruna Polisetty

GITAM University, Visakhapatnam - Department of Finance ( email )

Visakhapatnam, Andhra Pradesh
India

Vijaya Kittu Manda (Contact Author)

Gandhi Institute of Technology and Management (GITAM), Institute of Management ( email )

Rushikonda
Gandhi Nagar
Visakhapatnam, 530045
India
+919849519188 (Phone)

GITAM Deemed to be University ( email )

Rushikonda
Gandhi Nagar
Visakhapatnam, 530045
India
+919849519188 (Phone)

Naveenan R.V.

Vivekananda Institute of Management ( email )

Bengaluru, 560083
India

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