Flipkart Has Become The "Tang Seng Meat" In The Eyes Of WAL-MART And Amazon.
Over the past two years, such acquisition rumours have emerged, but this is not groundless.
Wal-Mart
and
Amazon
Are currently in contact with
Flipkart
Negotiations.
According to the world clothing and shoe net, WAL-MART has completed the investigation and evaluation procedures, and hopes to buy Flipkart 51% or more shares at a price of 100 to 12 billion dollars. The acquisition may be closely related to Competition Commission of India, because Flipkart and Amazon will monopolize the India electricity supplier market completely.
Why is Flipkart a "Tang Seng meat"?
Flipkart, founded in 2007, is considered to be Amazon in India.
Over the past ten years since its inception, more than $6 billion has been completed, including about $2 billion 500 million from SoftBank Vision Fund, Japan.
Flipkart has become India's most valuable Internet startups.
India is a huge but relatively undeveloped but rapidly growing market. India is an extremely important market for any global enterprise.
Before Amazon entered the India market, Flipkart is India's largest electricity supplier.
Although Flipkart is still in the leading position in India's electricity supplier market, the actual market share of the company is controversial.
However, Flipkart is still a force that can not be ignored in India's electricity supplier market.
For WAL-MART or Amazon, the majority stake in Flipkart means a dominant position in the electricity market in India. It is estimated that by 2026, the total electricity market GMV in India will reach US $200 billion.
The India market is also the key battleground for major multinational enterprises such as US businesses and Alibaba.
What can Amazon and WAL-MART get from acquisitions?
If WAL-MART or Amazon completes the acquisition of Flipkart, Flipkart will not only enhance financial strength, but also improve the supply chain and improve the efficiency of procurement and product classification.
Amazon entered the India market in 2012 and promised to invest at least $5 billion in the India ecommerce market.
If Amazon buys Flipkart, it is estimated that they will jointly control India's 80% online retail market.
As a result, Flipkart and Amazon will double their market share and become an undisputed supplier of electricity in India and become an important force in the global market.
On the other hand, WAL-MART has been focusing on India's retail market for many years, but India's foreign direct investment policy hinders WAL-MART's expansion in India market.
Although WAL-MART operates nearly 20 Best Price wholesale stores in India, WAL-MART is far away from India's online retailing industry.
And since the end of the chaotic cooperation with retailers Bharti group in 2013, WAL-MART has been avoiding joint efforts with other retailers in India.
Although WAL-MART is still the world's largest retailer, the online retail market started late.
In order to make up for lost time, WAL-MART has been trying to expand the share of the US electricity supplier market in the past few years.
In 2016, WAL-MART bought Jet.com, an e-commerce website at a price of 3 billion US dollars.
The initial negotiations between WAL-MART and Flipkart began in 2016, and Flipkart also took a huge share of the market by Amazon during that time.
Most of the stake in acquiring Flipkart will be WAL-MART's biggest investment in the field of electricity, and is an important step in expanding business in India and the world.
With the help of WAL-MART, Flipkart will enhance its online and offline retail channels to compete with Amazon, which means that the dispute between Flipkart and Amazon in India will not end soon.
In essence, this is a war between WAL-MART and Amazon, just like today's US retail market.
Finally, no matter which side the Flipkart will work with, it will strengthen the confidence of India's Internet consumption potential and may stimulate further strategic investment by other international participants.
More interesting reports, please pay attention to the world clothing shoes and hats net.
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