With India’s 1 billion+ population and web savvy citizens ready to buy online, India is now a major battle ground for companies like Walmart and Amazon who seek to gain traction in the country.
That’s why big-box retail giant Walmart (WMT) made a $16 billion bet on the Indian market by buying a 77% stake in local online retailer Flipkart. This looked like a smart move, as Flipkart was an early mover in that market, establishing a robust delivery network and grabbing over a third of India’s e-commerce market by the end of 2017.
All the while Amazon’s e-commerce market share in India shot up to 27% in 2017 from just 10% three years prior, while Flipkart lost 4 percentage points over the same period to 34%.
Amazon.com is quickly making ground in India and ground that it will not give up without a fight. It is introducing better delivery services and speed of delivery to outmatch its competitors.
The American behemoth is now firmly on track to leave Flipkart behind as its gross merchandise value (GMV) clocked $7.5 billion in India for the fiscal year that ended in March 2018. Flipkart’s GMV stood at only $6.2 billion for that same period.