After completing a $16 billion buyout in the biggest deal in Indian e-commerce history, world’s largest retailer Walmart CEO Doug McMillon said that the retail giant could consider a franchise model for India. Here's what he has to say on whether Flipkart will become Walkart.
After completing a $16 billion buyout in the biggest deal in Indian e-commerce history, world’s largest retailer Walmart CEO Doug McMillon said that he doesn’t anticipate any name change for Flipkart. “ I don’t anticipate a name change for Flipkart; it won’t become Walkart,” quipped McMillon, according to a report by ET Now.
Interestingly, Walmart also said that the giant retailer could consider a franchise model for India; adding that he can’t can’t make public announcement now. In a press release yesterday, Walmart said that post-acquisition, both the partners will leverage their strengths, but will maintain their distinct brands and operating structures. Walmart India Chief Executive Krish Iyer said, “We operate 21 best price cash-and-carry stores and one fulfillment centre in 19 cities across nine states, with 95 percent of sourcing from the country, aiding suppliers, creating skilled jobs and contributing to local economies.”
Yesterday, McMillion told Flipkart employees that he doesn’t see any more changes in leadership apart from Sachin Bansal’s exit. Further, Doug McMillon said that Walmart management is impressed with Flipkart and its group companies and its ability to leverage technology efficiently. Through this deal, Walmart’s will be eyeing a greater pie of Indian e-commerce market given the country’s strong GDP growth, a growing middle class and significant runway for smartphone, internet and eCommerce penetration.
“Flipkart has established itself as a prominent player with a strong, entrepreneurial leadership team that is a good cultural fit with Walmart. This investment aligns with our strategy and our goal is to contribute to India’s success story, as we grow our business,” Judith McKenna, president and chief executive officer of Walmart International said, noting that over the last 10 years, Flipkart has become a market leader by focusing on customer service, technology, supply chain and a broad assortment of products. “With Flipkart and the other shareholders who have come together, we will continue to advance the winning eCommerce ecosystem in India,” she added.