The Indian eCommerce segment has been witnessing many changes. With the growing popularity of online retail business in India, many International retailers are increasingly looking at ways to enter the Indian market as it is an easier point of entry into the Indian market. The eCommerce business is projected to grow to a $22 billion industry over the next 5 years, with the number of Indian customers turning to online shops for their purchases increasing by the day.
A few days back, the Economic Times reported that Walmart, one of the biggest and iconic retail chains in America, is planning to setup an eCommerce marketplace in India. Walmart has had its eyes on India for some time now and it had earlier entered the retail industry in India by partnering with Bharti Enterprises. This partnership did not perform as well as expected. Due to RTI constraints which forbid the company from venturing out into the Indian market, it is now preparing to enter the market by setting up an online marketplace, following the likes of Amazon. Reportedly, key executives have already been hired for Walmart’s Indian venture and planning is already underway for the venture.
The RTI norms are being reconsidered by the Indian Government after several debates over the unusual strictness of the regulations. If, as per expectations, the policy makers become lenient on the stringent regulations, Walmart will have the chance to setup offline retails channels across the country, as per its original aspirations for the Indian market. in the meanwhile, online presence seems to be the strategic point of entry for this retail giant.
Opportunity to sellers
With another marketplace in the scene, that too a credible one like Walmart, Indian online sellers have more platforms to sell their products, which in turn means more reach and more customers. In order to attract maximum sellers, marketplaces will compete amongst themselves to be more popular and more preferred by sellers, thus ensuring more competitive and efficient sales channels.
What are your thoughts on Walmart’s entry in the country? Share them with us.