Changing regulations: Walmart CEO says company needs to comply with Indian rules

By: |
August 26, 2021 1:45 AM

McMillon said that India is one of the top three global markets along with the US and China. “We are going to see a market that is north of a trillion US dollars by 2025 I believe,” McMillon said.

While a separate e-commerce policy is already in the works, the consumer affairs ministry had recently floated a series of amendments to the E-commerce Consumer Protection Rules 2020, which has caused unease within the industry.While a separate e-commerce policy is already in the works, the consumer affairs ministry had recently floated a series of amendments to the E-commerce Consumer Protection Rules 2020, which has caused unease within the industry.

Doug McMillon, president and CEO, Walmart Inc on Wednesday said the Indian market is dynamic and is going to have challenges. “….No doubt every market where we operate, especially India is going to have challenges….rules are changing, the customers are changing, competition is changing….India is such a diverse market..we have to think local and execute locally. It has its own rules and we got to comply with those rules,” McMillon said at the virtual Converge @ Walmart event.

McMillon’s comments assumes significance as it comes at a time when the Indian government is in the process of tightening the rules in the e-commerce sector, especially for the ones having foreign investments, in such a way that their operations may get adversely affected. The government though maintains that the changes in regulations are meant to bring about a level playing field between the online and offline retailers.

While a separate e-commerce policy is already in the works, the consumer affairs ministry had recently floated a series of amendments to the E-commerce Consumer Protection Rules 2020, which has caused unease within the industry.

Meanwhile, the top two e-commerce firms, Flipkart and Amazon have also come under the CCI’s (Competition Commission of India) scanner for their alleged anti-competitive business practices. Earlier this month, they were not able to get any relief from the Supreme Court, which observed that big companies like them should voluntarily come forward for such probes.

McMillon said that India is one of the top three global markets along with the US and China. “We are going to see a market that is north of a trillion US dollars by 2025 I believe,” McMillon said.

Both the Flipkart and PhonePe businesses are “growing very well,” he added. Flipkart’s marketplace today has over 300,000 registered sellers while PhonePe’s user base has hit about 300 million, the CEO said.

Walmart that acquired Flipkart in a $16 billion deal in 2018 is seeing competition from new local entrants Reliance Industries and the Tata Group in the space which initially had largely been a two-player market led by Flipkart and Amazon.

A recent report by Bain & Company said that India’s e-retail market is expected to grow by 25%-30% annually over the next five years to touch $120-$140 billion by FY26, surpassing modern trade. Walmart and Amazon are spending billions of dollars in India to build on their businesses.

Last month, Flipkart raised a huge $3.6 billion in a fresh round of funding from a clutch of investors led by GIC, Canada Pension Plan Investment Board, SoftBank Vision Fund 2 and Walmart at a post-money valuation of $37.6 billion.

The fresh capital will be used to fund the growth of new product categories, strengthen the firm’s infrastructure and supply chain besides building on its technological capabilities, Flipkart had said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Office buzz gets louder in Bengaluru, Chennai, Hyderabad with double-digit rise in rentals
2WFH Effect: Dying category of tablets gets revived as demand increases
3Losing Ground: Despite relief, Vodafone Idea revival uphill battle