Walmart CEO: Flipkart will retain its name
The CEO of Walmart, Doug McMillon, has announced that, following the Walmart acquisition of Flipkart on May 9, Flipkart will retain its name and be run separately, at least for the near future.
The Walmart acquisition of Flipkart, attained by the US business buying a 77 percent stake in Flipkart, has been called the world’s biggest retail deal as it was valued at 16 billion US dollars. Talks began as far back as 2016 and there was some opposition from traders and some government members but the deal has now gone through meaning that the two largest e-commerce platforms in India, Flipkart and Amazon, are now both US-owned.
Following the official announcement of the deal, McMillon assured that Flipkart will not be changing its name to Walmart in India. He also stated that Flipkart’s brick and mortar stores and online platform will also be run separately for the time being. McMillon also explained that Walmart’s current focus is on the Indian and Chinese markets.
A post on Flipakrt’s Facebook page announcing the deal on May 9 now has over 129,000 likes and over 300 comments. As one of India’s largest e-commerce platforms (the other being Amazon), this is no surprise.
The deal is highly significant not just for customers, who are curious as to how their experience will change, but also for the multitude of sellers that use the platform.
As Flipkart itself is partnered with many fashion brands, and its subsidiary Myntra/Jabong is the largest multi-brand e-commerce fashion portal in India, the deal has a strong significance for the Indian fashion industry as well.
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