According to a fresh report coming from the Indian edition of The Economic Times outlet, it appears that Walmart will soon open an electronic marketplace in India, which is said to have a similar business model like Amazon and eBay. Walmart has allegedly assigned a team of over 15 people, under the helm of Arvind Mediratta, the Chief Operating Officer of Walmart India, to develop the online platform which could be launched in the coming 3-4 months.
Here’s what some insiders have said about this:
The project has been on for seven to eight months and has gathered pace in the past four to five months. It will be the Amazon and eBay business model.
Walmart will thus enter India’s retail market, which is estimated at at an overall value of $450 billion. India’s e-commerce industry is expected to grow sevenfold, and is said to reach $22 billion over next five years. The American corporation initially wanted to establish brick-and-mortar stores in India, but the big retailer has abandoned these plans and is now allegedly readying a major e-retailing push in India.
Amazon already has a good presence in India and it has used various promotions such as offering free shipping for purchases above $125 from the US store. eBay also has recently increased its business in India by investing $133 million Snapdeal. Walmart’s e-commerce plans in India are said to be easier to transform in reality since this doesn’t require as many licenses as a brick-and-mortar stores. Also, it’s known that the Indian government has all sorts of impediments for foreign investors looking to enter the big retail market.
Walmart has announced revenues of $476 billion for 2013, but its online revenues constitute “only” $10 billion, which is much less than Amazon’s $74 billion amount, so it will be curious to see how will Walmart manage to take on Amazon on foreign markets. Initially, the online Walmart store will cater to ‘wholesale consumers’ and will gradually roll out to regular buyers.