Walmart says Flipkart is ‘a key center of learning’ for its entire global business
Summary
Internet penetration is tipped to cross 500 million this year and a rising middle-class emerging, all of which led Walmart CEO Doug McMillon to describe the deal as “a unique opportunity in a market with significant long-term growth prospects” — but the aspirations run further.The company’s verticals span electronics, fashion and more, but Flipkart’s management team consistently returned to other services including its mobile payment arm, supply chain business than does 500,000 deliveries daily and more.That “ecosystem” play is something that is quite unique to Asia, particularly in China, and it is an area where Walmart believes it can glean operational intelligence and potential strategy for other markets, including the U.S..That helps bring more immediate returns since, as Walmart’s executives admitted, Flipkart isn’t likely to turn a profit any time soon since it is focused on chasing scale in India.It exited China in 2016 — instead opting for a partnership with e-commerce giant JD.com — and this month it retreated from the UK after selling its Asda business to rival high-street retailer Sainsbury’s .