This is because the projected boom in India's online shoppers never really happened.
In the U.S, mobile payments apps such as PayPal, Apple and Samsung, including those from retailers like Walmart and Target are competing to take a larger pie in the market. But everyone else is nipping at Walmart's heels.
The Walmart-Flipkart deal is nothing but in long run a clear attempt to control & dominate the much potential retail trade of India by Walmart through e commerce which is only a bridge to reach out to offline retail market of India. And its massive network of physical stores should give the company a leg up in building a delivery infrastructure.
While no one knows if Amazon is stopping its Shopping campaigns for good, the disappearance of their ads - and bidding power - will offer an opening for smaller retailers in the same product categories that lack the AdWords budget Amazon possesses.
India continues to boast an appealing story. But only about 15 percent shop via the internet. By 2026, the sector is estimated to grow 13 times to $200 billion, but even then, it will account for only 12% of overall retail in the country. Experts anticipate online sales in the country will explode to $100 billion by 2020, up from a mere $3 billion in 2013. The country is home to 443 million millennials, and smartphone penetration is expected to double in the next three years.
Nokia 6.1 to go on Amazon sale on May 13
Now, online retailer Amazon India has listed the smartphone on its website and has also started taking registrations for the same. Currently, Amazon is selling the Nokia 6 (2018 ) 3GB RAM/ 32GB storage variant in India at a retail price of Rs. 16,999.
Meanwhile, eBay has announced that it has notified Flipkart of its intentions to sell its equity holdings in Flipkart, which eBay estimates to be 1.1 billion Dollars in value. Walmart's Krish Iyer will be the CEO of the Bengaluru-based firm. "It is to be noted that nowhere in the world, Walmart has a marketplace model", Mahajan has conveyed his concern over the Flipkart deal to the prime minister. Soon after the deal was announced yesterday, RSS-affiliate Swadeshi Jagran Manch alleged that Walmart was "circumventing" rules for a "back-door entry" into India and sought Prime Minister's intervention to safeguard "national interest".
The deal represents a blow to Amazon's business in India, especially given that only last week, Amazon reportedly made a bid for 60% of Flipkart.
A statement issued by Walmart named Flipkart co-founder Binny Bansal, Tencent Holdings Ltd, Tiger Global Management LLC and Microsoft Corp as the investors who would hold the remaining 23 per cent, implying SoftBank had agreed to sell its stake. That means Walmart already has at least some physical infrastructure in place.
What's worse is that online retail growth slowed in 2015 and has largely plateaued over the last two years.
Walmart said it would support small business and "Make in India" through direct procurement as well as provide increased opportunities for exports through global sourcing and e-commerce.
Many of Walmart's shoppers in its stores tend to be in the lower- and lower-middle income brackets. Online retailing now makes for a minuscule 2% of India's $670 billion retail market.