AIOVA seeks clarity of Flipkart-Walmart deal, wants Government to monitor deal

By

Maverick Martins

Published
May 7, 2018

As Indian e-commerce firm Flipkart gets ready to sign multi-billion dollar deal with U.S. retail giant Walmart, All India Online Vendors’ Association (AIOVA), a body representing seller has sought clarity from the etailer regarding their future.
 

AIOVA fears that the Flipkart-Walmart deal which is estimated to be $15 billion (11 billion pounds) could prove to be detrimental to sellers on the platform. The body represents more than 3,500 sellers who sell their products through e-commerce firms like Flipkart and Amazon.
 
The sellers want an official communique from Flipkart regarding the ongoing deals and an assurance on continuity of their business with the e-commerce firm as they feel that once the deal is finalised Walmart may bring in its own sellers or launch private labels which may impact their business.

“There has been no communication from Flipkart or other parties involved in the matter. While we understand that the deal discussions are private, it leaves us in the dark as to what is the future for us on the platform. We want to get clarity on the way forward as we also need to plan accordingly,” the AIOVA spokesperson told PTI.
 
When contacted, a Flipkart spokesperson said, “There have been speculations for the last six months of Flipkart being in and out of negotiations with several parties. For us, we know that we have remained steadfastly focused on growing the Flipkart business and will continue to do this along with our seller ecosystem.”
 
“Walmart may look at bringing in its own private labels via Flipkart to the Indian consumers. These products would be brought in at hyper-competitive prices, which will cannibalise the market and make it difficult for other sellers to operate. We are studying the situation and will take appropriate action, including the legal route, if necessary,” the AIOVA spokesperson said.
 
The spokesperson added that the government needs to monitor inflow and outflow of funds in marketplaces (like Flipkart) when such deals take place in order to ensure that all the stipulated norms are adhered to and no irregularities take place.